If rent paid is Rs 10,000 and prepaid rent at year-end is Rs 2,000, what is the rent expense for the current year under accrual accounting? MCQ with Answer and Explanation

Question

If rent paid is Rs 10,000 and prepaid rent at year-end is Rs 2,000, what is the rent expense for the current year under accrual accounting?

A. Rs 12,000

B. Rs 10,000

C. Rs 2,000

D. Rs 8,000

Answer: Option D

Solution (By JKSSB Mock Tests)

Current year expense = Paid amount - Prepaid for next year = 10,000 - 2,000 = Rs 8,000.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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