Pandar Ltd prepares accounts to the end of February each year. The accrual for electricity brought forward on 1 March 2019 was £1,000. The accountant estimates that electricity consumed in January and February 2020, but not billed until after the year end, would cost some £1,400. Cheques paid to the power supplier during the year ended 28 February 2020 totalled £13,300. With respect to the financial statements for the year ended 28 February 2020, which of the following statements is true? a) There will be a charge in the Income Statement of £1,400 and an accrual in the Statement of Financial Position of £13,700. b) There will be a charge in the Income Statement of £12,900 and an accrual in the Statement of Financial Position of £1,200. c) There will be a charge in the Income Statement of £13,700 and an accrual in the Statement of Financial Position of £2,400. d) There will be a charge in the Income Statement of £13,700 and an accrual in the Statement of Financial Position of £1,400.
Pandar Ltd prepares accounts to the end of February each year. The accrual for electricity brought forward on 1 March 2019 was £1,000. The accountant estimates that electricity consumed in January and February 2020, but not billed until after the year end, would cost some £1,400. Cheques paid to the power supplier during the year ended 28 February 2020 totalled £13,300. With respect to the financial statements for the year ended 28 February 2020, which of the following statements is true?
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- a) There will be a charge in the Income Statement of £1,400 and an accrual in the
Statement of Financial Position of £13,700. -
b) There will be a charge in the Income Statement of £12,900 and an accrual in the Statement of Financial Position of £1,200.
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c) There will be a charge in the Income Statement of £13,700 and an accrual in the Statement of Financial Position of £2,400.
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d) There will be a charge in the Income Statement of £13,700 and an accrual in the Statement of Financial Position of £1,400.
- a) There will be a charge in the Income Statement of £1,400 and an accrual in the
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