Question :
Rent paid in cash Rs.15,000. Rent paid in advance for next year Rs.2,000 and paid for previous year Rs.3,500. The amount of rent to be debited to Income and Expenditure Account will be:
Option 1:
Rs.10,500
Option 2:
Rs.9,500
Option 3:
Rs.18,000
Option 4: Rs.16,500
Answer (1)
16th Jan, 2024
Correct Answer:
Rs.9,500
Solution : Rent to be debited to Income and Expenditure Account = Rent paid - Closing advance - Opening outstanding paid = Rs.15,000 - Rs.2,000 - Rs.3,500 = Rs.9,500. Hence, the correct option is 2.
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