• 1 Marks

FA – May 2013 – L1 – SA – Q25 – Accruals and Prepayments

This question involves calculating the rent expense to be charged for the year.

A firm paid a rent of N9 million to cover the eighteen months period ending 30 June 2013. How much rent should be charged to the Statement of Profit or Loss as rent expense for the year ended 31 December 2012?

N6,000,000

Explanation:
Since the rent covers an 18-month period, we need to determine how much applies to the year ended 31 December 2012 (12 months).
Rent expense for 12 months:

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