Paul Company has an accounting year ended on 31 October. The company pays rent on its premises quarterly in advance on 1 January, 1 April, 1 July and 1 October each year. The annual rent was £60,000 per year until 30 June 20X2 when it was increased to £72,000 per year as from 1 July 20X2. The charge to the profit and loss account in respect of rent for the year ended 31 October 20X2 will be: A. £54,000 B. £64,000 C. £65,000 D. £66,000
Paul Company has an accounting year ended on 31 October. The company pays rent on its premises quarterly in advance on 1 January, 1 April, 1 July and 1 October each year. The annual rent was £60,000 per year until 30 June 20X2 when it was increased to £72,000 per year as from 1 July 20X2. The charge to the profit and loss account in respect of rent for the year ended 31 October 20X2 will be: A. £54,000 B. £64,000 C. £65,000 D. £66,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Paul Company has an accounting year ended on 31 October. The company pays rent on its premises quarterly in advance on 1 January, 1 April, 1 July and 1 October each year. The annual rent was £60,000 per year until 30 June 20X2 when it was increased to £72,000 per year as from 1 July 20X2.
The charge to the
A. £54,000
B. £64,000
C. £65,000
D. £66,000
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