During the year ended 31st December 2001, Nuju Enterprises paid rent as follows: Jan. 20, ₦24 000 for a period of 4 months. May. 16, ₦30 000 for a period of...

During the year ended 31st December 2001,

Nuju Enterprises paid rent as follows:

Jan. 20, ₦24 000 for a period of 4 months.

May. 16, ₦30 000 for a period of 5 months.

Oct. 15, ₦36 000 for a period of 6 months.What is the overpaid portion of the rent?

Answer Details

To find the overpaid portion of the rent, we need to calculate the total rent paid and compare it to the rent that would have been paid if it had been paid monthly for the entire year. The rent paid for 4 months in January is ₦24,000. This means that the monthly rent is ₦6,000 (₦24,000 ÷ 4). The rent paid for 5 months in May is ₦30,000. This means that the monthly rent is ₦6,000 (₦30,000 ÷ 5). The rent paid for 6 months in October is ₦36,000. This means that the monthly rent is ₦6,000 (₦36,000 ÷ 6). To find the rent that would have been paid if it had been paid monthly for the entire year, we need to multiply the monthly rent by 12: Yearly rent = Monthly rent x 12 Yearly rent = ₦6,000 x 12 Yearly rent = ₦72,000 Now we can calculate the total rent paid by adding up the amounts paid in January, May, and October: Total rent paid = ₦24,000 + ₦30,000 + ₦36,000 Total rent paid = ₦90,000 To find the overpaid portion of the rent, we need to subtract the yearly rent from the total rent paid: Overpaid portion = Total rent paid - Yearly rent Overpaid portion = ₦90,000 - ₦72,000 Overpaid portion = ₦18,000 Therefore, the overpaid portion of the rent is ₦18,000. So the correct answer to the question is option B: ₦18,000.