Mary rents a workshop from which she conducts her manufacturing business. At 1 September 2018 Mary had paid rent in advance of £2,200. During the next 12 months, Mary paid out £12,300 in rent. At 31 August 2019, Mary owed £1,500 in rent for the financial year to 31 August 2019. Mary now needs to determine the annual rent expense for the year to 31 August 2019. Which one of the following calculations will enable Mary to determine the correct annual rent expense that she should show in her statement of profit or loss for the financial year?

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The Answer of Mary rents a workshop from which she conducts her manufacturing business. At 1 September 2018 Mary had paid rent in advance of £2,200. During the next 12 months, Mary paid out £12,300 in rent. At 31 August 2019, Mary owed £1,500 in rent for the financial year to 31 August 2019. Mary now needs to determine the annual rent expense for the year to 31 August 2019. Which one of the following calculations will enable Mary to determine the correct annual rent expense that she should show in her statement of profit or loss for the financial year?

Mary Rents a Workshop from Which She Conducts Her Manufacturing