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Final accounts of manufacturing entities

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Querist : Anonymous

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Querist : Anonymous (Querist)
27 October 2010 dear sir ,
plz let me the ans of thiz question.
"Rent paid on 1 oct,2004 for the year to 30th sept,2005 was 1,200 and rent paid on 1 oct , 2005 for the year to 30th sept,2006 was 1600.rent payable as shown in the profits and loss account for the year ended 31st december 2005, would be?"

29 October 2010 Rent Exps charged to P&L will be

Jan to Sep 2005 1200 X 9 = 10800
Oct to Dec 2005 1500 X 3 = 4500
Total 15300

Rent paid in advance to be shown in the Balance Sheet as at 31st Dec will be
Jan to Sep 2006 = 1500 X 9 = 13500

Hope this is clear

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Querist : Anonymous

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Querist : Anonymous (Querist)
31 October 2010 thnxx sir..




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