Rent has been paid on 1st January 2018 for a period of 6 months amounting to Rs 60,000 @ 10,000 per month. By what amount shall the prepaid expenses account be debited, while passing the adjustment entry?

It shall be debited by Rs 10,000

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It shall be debited by Rs 30,000

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It shall not be debited

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It shall be debited by Rs 20,000

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Solution

The correct option is B
It shall be debited by Rs 30,000

It shall be debited by Rs 30,000 for the period of 3 months (April to June).

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Rent has been paid on 1st January 2018 for a period of 6 months amounting to Rs 60,000 @ 10,000 per month. By what amount shall the prepaid expenses account be debited, while passing the adjustment entry?

The correct option is B It shall be debited by Rs 30,000 It shall be debited by Rs 30,000 for the period of 3 months (April to June).

The correct option is B
It shall be debited by Rs 30,000

It shall be debited by Rs 30,000 for the period of 3 months (April to June).