A company has sublet part of its offices and in the year ended 30 November 20X5 the rent receivable was:
| Until 30 June 20X5 | $2,100 per year |
| From 1 July 20X5 | $3,000 per year |
Rent was paid quarterly in advance on 1 January, April, July, and October each year.
What amounts should appear in the company’s financial statements for the year ended 30 November 20X5?
Answer
| $ | |
| Statement of profit or loss | |
| December to June 2,100 x 7/12 | 1,225 |
| July to November 3,000 x 5/12 | 1,250 |
| Rent receivable | 2,475 |
Statement of financial position
Sundry payables 3,000 x 1/12 =$250 (December rent received in advance)