Accounting Multiple Choice Question – 9 October 2017

The following information is available about rent received for the year ended 31 March 2016.

How much should be shown as income in the income statement for the year ended 31 March 2016?

Select ONE answer:

1. £8,410
2. £9,250
3. £9,380
4. £9,510
5. £10,350

Show your workings to arrive at your answer, and explain and justify your reasons?……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Accounting KS5 classes.

The answer is 1 – Receipts during the year were £9,380 which included the moneys owed to the business in the debit balance brought forward of £550. Because there is a credit balance of £420 at the end of the year, showing moneys are owed by the business to the person renting from them, this too needs to be subtracted leaving the balance of £8,410 being the income of the year.

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