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. The closing balance for 1998...

Answer Details

The closing balance for 1998 is an item under current liability. This is because rent owing is an amount that the company owes to another party, which must be paid within one year. The closing balance for rent owing represents the total amount that the company owes to its landlord for rent that was due but not yet paid as at the end of the year. This amount is classified as a current liability because it is a debt that must be paid within the next 12 months. Therefore, the closing balance for rent owing is reported under the current liabilities section of the balance sheet.