Accounting 0452 · IGCSE · Other payables and other receivables
Other payables and other receivables — practice question
Karishma owns and operates her own business. The balances shown in her books on 1 October 2020 were as follows.
Insurance account $1700 prepaid
Electricity account $1800 owing
During the financial year ended 30 September 2021 Karishma made these cheque payments.
Insurance payments:
7 February 2021 $3400
13 August 2021 $3500
Electricity payments:
14 October 2020 $1800
24 January 2021 $1800
26 May 2021 $1800
A refund of $300 for insurance overpaid was received by bank transfer on 28 February 2021. The insurance payment made on 13 August 2021 covered five months up to 31 December 2021.
At 30 September 2021, electricity owing amounted to $2000.
(a)[10]
Draw up the following accounts for the year ended 30 September 2021. Balance them off and carry the balances down on 1 October 2021.
(b)[5]
Advise Karishma on whether she ought to change to the new electricity supplier. Support your view with two advantages and two disadvantages of changing supplier.
(c)[4]
Prepare the rent receivable account for the year ended 30 September 2021. Balance it off and carry the balance down on 1 October 2021.
(d)[1]
State which section of the statement of financial position at 30 September 2021 would contain the balance on the rent receivable account.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme.