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...
Question 1 Report
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.
Download The App On Google Playstore
Everything you need to excel in your exams
Personalized AI Learning Chat Assistant
200,000+ Exam Questions Across IGCSE, JAMB, WAEC & NECO
Over 3,900 Lesson Notes
Offline Support - Learn Anytime, Anywhere
Green Bridge Timetable
Literature Summaries & Potential Questions
Track Your Performance & Progress
In-depth Explanations for Comprehensive Learning