Having agreed on a monthly rent of Rs 18,000 for business premises rented to Mr Ravi, three months rent was in arrears as at 31st March 2018. What will appear as rent accrued in the financial statements as at 31st March 2018?

Rs 18,000

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Rs 36,000

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Rs 54,000

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None of the above

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Solution

The correct option is C
Rs 54,000

Rent Accrued shall be Rs 18000 * 3 = Rs 54,000.

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Particulars		Dr. (₹)	Cr. (₹)
Sundry Debtors	................................................................................	3,20,000	…
Stock on 1^st April, 2017	................................................................................	2,20,000	…
Cash in Hand	................................................................................	350	…
Cash at Bank	................................................................................	15,450	…
Plant and Machinery	................................................................................	1,75,000	…
Sundry Creditors	................................................................................	…	1,06,500
General Expenses	................................................................................	10,750	…
Sales	................................................................................	…	13,45,000
Salaries	................................................................................	22,250	…
Carriage Outwards	................................................................................	4,000	…
Rent	................................................................................	9,000	…
Bills Payable	................................................................................	…	75,000
Purchases	................................................................................	11,88,700	…
Discounts	................................................................................	11,000	…
Premises	................................................................................	3,45,000	…
Capital on 1^st April 2017	................................................................................	…	7,95,000
Total		23,21,500	23,21,500