Hi, so sorry to be a nuisance and very grateful for anyone that wouldn't mind helping. I've done my mock paper BA4 and have got a question wrong about prepayments - probably realy simple so some, but i know the answer is £3000, yet i can't work out how to get to that figure.
I've asked my tutor, and she wasn't much help either!
If anybody could spare a moment to expalin to me in plain English, i would be so very grateful!
Thanks so much in advance.
The question is as follows:
Sanjay's business year runs from 1 April to 31 March. At the end of March 2013 his accounts showeed prepaid rent of £600.
During the year to 31 March 2014 he pays £3200 in rent to his landlord in four equal instalments (paid quarterly in advance) on 30 June 2013, 30 September 2013, 31 December 2013 and 31 March 2014.
How much rent should be chanrged to the profit and loss account for the year ended 31 March 2014?