i) Ms Tee rents her premises at an annual rental of GHC2,400. On June 1, 2016, Ms Tee had paid her rent up to the end of July, and during the year ended 31 May, 2017 she made the following payments for rent by cheque: August 25 December 1 GHC600 GHC600 March 31 GHC600 June 1 GHC600 ii) Ms Tee sublets part of these premises to Nana Akua at a rent of GHC960 per annum, and on June 1 2016 Nana Akua's rent was one month in arrears. During the year ended 31 May, 2017 Ms Tee received the following amounts in cash from Nana Akua; July 31 September 5 January 1 May 20 GHC80 GHC240 GHC300 GHC120 iii) On June 1, 2016 Ms Tee owed the Electricity Company Ghana GHC148 for electricity supplies up to that date. During the year, she made the following payments for rent by cheque: June 1 GHC148 October 1 GHC164 December 31 GHC208 April 30 GHC162 On 31 May, 2017 there was a balance outstanding on the Electricity Account of GHC192 You are required to write up Ms Tee's a) Rent Payable account b) Rent Receivable account c) Electricity Account, for the year ended 31 May, 2017 showing clearly the amounts to be transferred to the income statement in each case

i) Ms Tee rents her premises at an annual rental of GHC2,400. On June 1, 2016, Ms Tee had paid her rent up to the end of July, and during the year ended 31 May, 2017 she made the following payments for rent by cheque: August 25 December 1 GHC600 GHC600 March 31 GHC600 June 1 GHC600 ii) Ms Tee sublets part of these premises to Nana Akua at a rent of GHC960 per annum, and on June 1 2016 Nana Akua's rent was one month in arrears. During the year ended 31 May, 2017 Ms Tee received the following amounts in cash from Nana Akua; July 31 September 5 January 1 May 20 GHC80 GHC240 GHC300 GHC120 iii) On June 1, 2016 Ms Tee owed the Electricity Company Ghana GHC148 for electricity supplies up to that date. During the year, she made the following payments for rent by cheque: June 1 GHC148 October 1 GHC164 December 31 GHC208 April 30 GHC162 On 31 May, 2017 there was a balance outstanding on the Electricity Account of GHC192 You are required to write up Ms Tee's a) Rent Payable account b) Rent Receivable account c) Electricity Account, for the year ended 31 May, 2017 showing clearly the amounts to be transferred to the income statement in each case

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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