On the 30/5/93 Tolu & Co. paid 2 years rent of N50,000 which was debited
FINANCIAL
JAMB 1997
On the 30/5/93 Tolu & Co. paid 2 years rent of N50,000 which was debited to the rent account. The adjustment needed as at 31st December 1993 is?
- A. debit rent account and credited adjustment account
- B. debit prepayment account and credit rent account
- C. debit rent account and credit prepayment account
- D. debit adjustment account and credit prepayment account
Correct Answer: C. debit rent account and credit prepayment account
Post an Explanation Or Report an Error
If you see any wrong question or answer, please leave a comment below and we'll take a look. If you doubt why the selected answer is correct or need additional more details? Please drop a comment or Contact us directly. Your email address will not be published. Required fields are marked *