Day: October 23, 2021

Alex Ltd rents its building to Lucy Ltd.

At 31 December 2019, Lucy Ltd owed £4,500 for rent, but at 31 December 2020 had paid £3,200 in advance.

During the year Alex Ltd had received £17,100 in rental from Lucy Ltd.

What is the rental income to be shown in Alex Ltd’s Profit and Loss Account for the year ended 31 December 2020?

Select ONE answer:

1. £9,400
2. £15,800
3. £18,400
4. £24,800 

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

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

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

The answer is 1

1. Correct ==> -£4,500 – £3,200 + £17,100
2. Not correct
3. Not correct
4. Not correct

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