Question

from the following data find out the following total amount of rent to be debited to the income & expenditure account for the year ending 31-12-2014.

rent paid during the year:₹2,500
rent outstanding on 31-12-2014 : ₹400
rent paid in advance on 31-12-2014 : ₹300
rent outstanding on 31-12-2013 : ₹250
rent paid in advance on 31-12-2013: 300
plz solve this problem its urgent.
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Answer 1

Given data:

• Rent paid during the year = Rs 2,500
• Outstanding rent at the end = Rs 400
• Rend paid in advance at the end = Rs 300
• Outstanding rent at the beginning = Rs 250
• Rent paid in advance at the beginning = Rs 300

To find: The total amount of rent to be debited to the Income & Expenditure account.

Answer:

The treatment of rent expenses is as follows:

Rent to be debited = Rent paid during the year + Outstanding rent at the end + Rent paid in advance at the beginning - Outstanding rent at the beginning - Rent paid in advance at the end of the year

Substituting the values we have into the formula above,

Rent to be debited = Rs 2,500 + Rs 400 + Rs 300 - Rs 250 - Rs 300

Rent to be debited = Rs 2,650

Therefore, the total amount of rent to be debited to the Income & Expenditure Account for the year ending 31st December, 2014, is Rs 2650.