ACCA F3 Prepayment 4

During 2014, A a limited company paid a total of $129,570 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 129,570 No of months 15 Monthly rental 8,638
Monthly rental 8,638 No of months in one year 12 Total rental for the year 103,656
No of months paid in advance 3 Monthly rental 8,638 Prepayment 25,914

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