A Accounting

Rental income in the statement of profit or loss ( video below)

XYZ , a limited liability company, receives rent for subletting part of its office premises to a number of tenants.

In the year ended 31 December 20X7 XYZ received cash of $79,650  from its tenants.

Details of rent in advance and in arrears at the beginning and end of 20X7 are as follows:

31 December
20X7 20X6
$ $
Rent received in advance 7,100 6,150
Rent owing by tenants 4,575 4,225

All rent owing was subsequently received

What figure for rental income should be included in the statement of profit or loss of XYZ for 20X7?

Answer

RENTAL INCOME ACCOUNT
$ $
Opening rent owing 4,225 Opening rent in advance 6,150
Rent income (balancing figure) 79,050 Cash received 79,650
Closing rent in advance 7,100 Closing rent owing 4,575
90,375 90,375


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