QUESTION? The following information is extracted from the accounting records of
ID: 2330458 • Letter: Q
Question
QUESTION?
The following information is extracted from the accounting records of Yammy Traders on 28 February 2018, the end of the financial year:
• Rent received R16 500
Additional information:
1. The relevant office was occupied by the tenant for the full financial year.
2. The rental contract stipulates that the monthly rental is increased by 10% in September every year.
3. The rent for February 2018 has not yet been received.
Which one of the following alternatives represents the correct amount that will be disclosed as rent income in the statement of profit or loss and other comprehensive income of Yammy Traders for the year ended 28 February 2018?
1. R16 500
2. R17 325
3. R18 150
4. R18 900
Explanation / Answer
Answer would be 4 R18900 as the amount received at end of financial year is 16500 which is increased amount by 10% hence earlier it would have been = 16500÷90% = R15000 there for R15000 for 6 mnths and R16500 for rest of month gets to answer no. 4.