Accounting 9706 · AS & A Level · Preparation of financial statements

Preparation of financial statements — practice question

The details below refer to rent receivable for the year ended 31 March 2020: on 1 April 2019, rent due from the tenants was $700; on 1 April 2019, rent paid in advance by the tenants was $1200; rent collected during the year was $7800; and on 31 March 2020, rent due from the tenants was $1000. What amount of rental income is recorded in the income statement for the year ended 31 March 2020?

  • A$6300
  • B$7300
  • C$8300
  • D$9300

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