The year end is 30 April 20X0
Paid a phone bill on 30/07/X0 amounting to £1,200 for the period 15/04/X0 to 15/07/X0.
What is the overall charge which should affect the income statement account 'Telephone' within the year 30 April 20X0 resulting from this information?

Question

Quizplus · Accepted Answer

The charge for the period from 15/04/X0 to 30/04/X0 (15 days) should be included in the year ending 30 April 20X0. The total bill covers 3 months (15/04/X0 to 15/07/X0), so the daily rate is £1,200 / 92 days = £13.04. For 15 days, the charge is 15 * £13.04 = £195.60, rounded to £200.

The Year End Is 30 April 20X0