Question

Rent paid in the accounting year Rs. 6,000. Rent paid in advance at the end of the year Rs. 500. Rent outstanding but not yet paid for the year Rs. 1,000. The amount to be debited to income and expenditure account is:

• A. Rs. 6,500
• B. Rs. 5,500
• C. Rs. 6,000
• D. Rs. 7,000

Answer 1

The correct option is A Rs. 6,500

Rent paid during the yr. + Rent outstanding but not yet paid - Rent paid in advance at the end of yr. = Amount debited to income and expenditure account
Rs. 6,000 + Rs. 1,000 - Rs. 500 = Amount debited to income and expenditure account
Amount debited to income and expenditure account = Rs. 6,500.