Jacob's rent account shows a prepayment at 1 January 2019 of £750. During the year to 31 December 2019, Jacob paid rent of £11,000 from his bank account. At 31 December 2019 Jacob has a rent prepayment of £875. What is the figure that will appear in Jacob's trial balance for rent expense at 31 December 2019?

Question

Quizplus · Accepted Answer

The rent expense for the year is calculated as: Rent paid (£11,000) + Opening prepayment (£750) - Closing prepayment (£875) = £10,875.

Jacob's Rent Account Shows a Prepayment at 1 January 2019