a small doubt in accounts igcse ..hope sm1 helps plz!

[mak kings]

how is the rent account done and calculated ......and what does the sentence "rent 0f $900 payable quarterly in advance" mean? in this question 3(a)....rent acount portion!! :S
http://papers.xtremepapers.com/CIE/Cambridge IGCSE/Accounting (0452)/0452_s07_qp_2.pdf
http://papers.xtremepapers.com/CIE/Cambridge IGCSE/Accounting (0452)/0452_s07_ms_2.pdf

 

[itsme2012]

it means every 3 months... in a year there are 4 quarters.. so 4 x 3 = 12 . did u get it?

 

[mak kings]

sory nt realy i knw this but by doing this i cant find the answer .....to the quesion 31 rent account...plz cud u help me in finding the answer!!

 

[itsme2012]

oh okayy so it is done like this..

900/3 = 300... k? so 300 is taken into account for this month to the profit and loss account. Then balance 600 is prepayment and will be carried down. did u get it?

 

[mak kings]

yeh sort of....thnx !! wel..... 1 thing.. y did u take 3 in the denominator?

 

[Qtie Pie]

I cudnt open the file

 

[itsme2012]

yeh sort of....thnx !! wel..... 1 thing.. y did u take 3 in the denominator?

it means every 3 months... in a year there are 4 quarters.. so 4 x 3 = 12 . did u get it?