During 2014, A a limited company paid a total of $74,040 for rent covering the period from 1 October 2013 to 31 March 2015.
What figures should appear in the company's statement of profit or loss and statement of financial position?
Suggested solutions:
| Total rent | 74,040 | No of months | 15 | Monthly rental | 4,936 | Monthly rental | 4,936 | No of months in one year | 12 | Total rental for the year | 59,232 | No of months paid in advance | 3 | Monthly rental | 4,936 | Prepayment | 14,808 |