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On the 30/5/93 Tolu & Co. paid 2 years rent of N50,000 which was debited...

Accounts - Principles of Accounts
JAMB 1997
On the 30/5/93 Tolu & Co. paid 2 years rent of N50,000 which was debited to the rent account.
The adjustment needed as at 31st December 1993 is?
  • A. debit rent account and credited adjustment account
  • B. debit prepayment account and credit rent account
  • C. debit rent account and credit prepayment account
  • D. debit adjustment account and credit prepayment account
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Correct Answer: Option C
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