Rent owing as at 31st December 1998, N800. Rent paid up to 31st December 1998, N1,700. Rent owing as at 1st January 1998, N500. Rent charged to the profit a...

Rent owing as at 31st December 1998, N800. Rent paid up to 31st December 1998, N1,700. Rent owing as at 1st January 1998, N500. Rent charged to the profit and loss account for the year 1998 is

Answer Details

To calculate the rent charged to the profit and loss account for the year 1998, we need to find out the rent expense for the year. Rent expense for the year is the total rent payable for the year minus the rent payable at the beginning of the year (rent owing as at 1st January 1998). Total rent payable for the year is the sum of rent owing as at 31st December 1998 and rent paid up to 31st December 1998. So, Total rent payable for the year = Rent owing as at 31st December 1998 + Rent paid up to 31st December 1998 = N800 + N1,700 = N2,500 Rent expense for the year = Total rent payable for the year - Rent owing as at 1st January 1998 = N2,500 - N500 = N2,000 Therefore, the rent charged to the profit and loss account for the year 1998 is N2,000. Hence, the answer is N2,000.