A company sublets part of its office accommodation. In the year ended 30 June X5 cash received from tenants was $90,000.
Details of rent in arrears and in advance at the beginning and end of the year were:
| In arrears | In advance | |
| $ | $ | |
| 30 June X4 | 14,000 | 4,500 |
| 30 June X5 | 7,500 | 20,700 |
All arrears of rent were subsequently received. What figure for rental income should be included in the company's statement of comprehensive income for the year ended 30 June X5?
Suggested solutions:
| Rent in arrears Account | Debit | Credit |
| Rent in arrears ob | 14,000 | |
| Rent in arrears cb | 7,500 | |
| Rent in arrears adjustment needed | 6,500 |
| Rent in advance Account | Debit | Credit | Rent in advance ob | 4,500 |
| Rent in advance cb | 20,700 | |
| Rent in advance adjustment needed | 16,200 |
| Rental Income Account | Debit | Credit |
| Cash Received | 90,000 | |
| Rent in arrears adjustment needed | 6,500 | |
| Rent in advance adjustment needed | 16,200 | |
| Answer Rental Income | 67,300 |
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