The Tiny Tennis Club leases its club house and tennis courts from the local council. At 1 October 2020, the club had paid rent in advance on the club house and tennis courts of £1,500. During the financial year to 30 September 2021, the club paid rent on the club house and tennis courts of £15,400. At 30 September 2021, the club owed rent on the club house and tennis courts of £3,200. What is the charge for rent of the club house and tennis courts that the tennis club will present in its statement of profit or loss for the financial year ended 30 September 2021?

Question

Quizplus · Accepted Answer

The rent charge for the year is calculated as: £1,500 (prepaid at start) + £15,400 (paid during the year) - £3,200 (owed at end) = £20,100.

The Tiny Tennis Club Leases Its Club House and Tennis