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Use the following information to answer this questions. Rent prepaid - 1/01/2014 - N600 Rent...

Accounts - Principles of Accounts
WAEC 2016

Use the following information to answer this questions.

Rent prepaid - 1/01/2014 - N600
Rent paid - 31/12/2014 - N3,000
Rent prepaid - 31/12/2014 - N400.

Rent for 2014 chargeable to the profit and loss account is

  • A. N4,000
  • B. N3,000
  • C. N3,200
  • D. N2,800
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Correct Answer: Option B
Explanation

The profit and loss (P&L) statement is a financial statement that summarizes the revenues, costs and expenses incurred during a specified period, usually a fiscal quarter or year. 3000 is the only expenses incured within the year. other payments were made in advance.

 


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