Arjun's business pays rent quarterly in advance. The business year end is 31 December 2023 and the trial balance at that date shows a figure for rent of £2,150, before any adjustments. On 1 December 2023, Arjun had paid rent of £570 for the three months to the end of February 2024. His accounts for the year ended 31 December 2023 should show the following:
A) The rent expense charged in the statement of profit or loss should be £1,580.
B) The rent expense charged in the statement of profit or loss should be £2,150.
C) The rent expense charged in the statement of profit or loss should be £2,530.
D) The rent expense charged in the statement of profit or loss should be £1,770.

Question

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The Answer of Arjun's business pays rent quarterly in advance. The business year end is 31 December 2023 and the trial balance at that date shows a figure for rent of £2,150, before any adjustments. On 1 December 2023, Arjun had paid rent of £570 for the three months to the end of February 2024. His accounts for the year ended 31 December 2023 should show the following:
A) The rent expense charged in the statement of profit or loss should be £1,580.
B) The rent expense charged in the statement of profit or loss should be £2,150.
C) The rent expense charged in the statement of profit or loss should be £2,530.
D) The rent expense charged in the statement of profit or loss should be £1,770.

Arjun's Business Pays Rent Quarterly in Advance