On the 30/5/93 Tolu & Co. paid 2 years rent of N50,000 which was debited to the rent account.
At 31/12/93, what portion of that amount was prepaid?

MLAWAL01

6 years ago

7/12*25000 = 14,583.34 Prepaid
5/12*25000 = 10,416.67 Prepayment
Next year 25,000 Prepayment

Samuelsonuga

4 years ago

Prepaid=amount/2 years
=50000/2
25000
For 31/12 prepaid
=Number of months away from 05/30 divided by 12 multiply by 25000
=7/12×25000
=14583