Accounting 0452 · IGCSE · Other payables and other receivables
Other payables and other receivables — practice question
Karishma owns and manages her own business. On 1 October 2020, the balances in her books showed the following.
Insurance account $1700 prepaid
Electricity account $1800 owing
In the financial year ending 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 paid on 13 August 2021 covered a five-month period to 31 December 2021.
At 30 September 2021, $2000 was still owing for electricity.
(a)[10]
Prepare the following accounts for the year ended 30 September 2021. Balance the accounts and carry the balances down on 1 October 2021.
(b)[5]
Advise Karishma whether she should switch to the new electricity supplier. Support your answer with two advantages and two disadvantages of changing supplier.
(c)[4]
Prepare the rent receivable account for the year ending 30 September 2021. Balance the account and carry the balance down on 1 October 2021.
(d)[1]
Identify the section of the statement of financial position at 30 September 2021 where the balance on the rent receivable account would be shown.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Correct dates (1)” …