Other Receivables & Payables (Edexcel IGCSE Accounting: Introduction to Bookkeeping & Accounting): Exam Questions

At the start of the year a business’s rent received account had a debit balance of $200. During the year $250 per month was received from a tenant. At the end of the year the account had a credit balance of $100.

Identify the amount to be shown on the income statement for rent received for the year.

A sole trader’s draft profit for the year ended 30 April 2023 was $65000 before adjusting for an outstanding invoice for light and heat totalling $1200 for the three months ending 31 May 2023.

Identify the adjusted profit for the year ended 30 April 2023.

On 1 May 2022 insurance paid in advance was $360 On 1 July 2022, insurance, $1980, was paid by cheque.

This covered the twelve month period ending 30 June 2023.

Prepare the insurance account for the year ended 30 April 2023. Balance the account on this date and bring the balance down on 1 May 2023.

Insurance Account

Identify how income received in advance would be shown in the statement of financial position.

During the year ended 30 September 2020 the following cheque payments were made for rent at $300 per month.

Prepare the rent payable account for the year ended 30 September 2020. Balance the account on that date and bring the balance down on 1 October 2020.

Rent Payable Account

State, giving a reason, where the balance of the rent payable account in part (a) would appear in the statements of financial position at: 30 September 2019

State, giving a reason, where the balance of the rent payable account in part (a) would appear in the statements of financial position at: 30 September 2020

Yasir provided the following information relating to the rent account for the year ended 31 March 2021.

At 1 April 2020 Yasir owed two months’ rent totalling $500

During the year ended 31 March 2021 he paid total rent of $3750 by bank transfer.

Prepare the rent account for the year ended 31 March 2021. Balance the account on this date and bring the balance down on 1 April 2021.

Rent Account

Identify, indicating with a tick (✓), the classification of each of the following in the statement of financial position.

Rent expense prepaid

Identify, indicating with a tick (✓), the classification of each of the following in the statement of financial position.

Wages accrued

Complete the table below, indicating with a tick (✓) where each would appear in the statement of financial position.

What is the effect when a trader does not account for rent paid in advance?

During the year ended 31 March 2019 the following rental income was received.

Prepare the rental income account for the year ended 31 March 2019. Balance the account on that date and bring the balance down on 1 April 2019.

Rental Income Account

Complete the table by indicating with a tick (✓) what the balance of the rental income account represents on the given dates.