Clark Ltd has been trading for one year as at 31 December 2020 and during that year it paid electricity bills amounting to £760. On 14 January 2021 Clark received an electricity bill for the three months to 31 December 2020 for £310. It eventually paid the bill on 31 January 2021. Its accounts for the year ended 31 December 2020 should show: Select one: O a. A statement of profit or loss charge for electricity of £760 and an accrual of £310 on the statement of financial position o b. A statement of profit or loss charge for electricity of £1,070 and an accrual of £310 on the statement of financial position O c. A statement of profit or loss charge for electricity of £760 and a prepayment of £310 on the statement of financial position o d. A statement of profit or loss charge for electricity of £1,070 and a prepayment of £310 on the statement of financial position

Clark Ltd has been trading for one year as at 31 December 2020 and during that year it paid electricity bills amounting to £760. On 14 January 2021 Clark received an electricity bill for the three months to 31 December 2020 for £310. It eventually paid the bill on 31 January 2021. Its accounts for the year ended 31 December 2020 should show: Select one: O a. A statement of profit or loss charge for electricity of £760 and an accrual of £310 on the statement of financial position o b. A statement of profit or loss charge for electricity of £1,070 and an accrual of £310 on the statement of financial position O c. A statement of profit or loss charge for electricity of £760 and a prepayment of £310 on the statement of financial position o d. A statement of profit or loss charge for electricity of £1,070 and a prepayment of £310 on the statement of financial position

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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