Page 150 - F3 -FA Integrated Workbook STUDENT 2018-19

Chapter 10

Example 2

Accrued and prepaid income

Titanium had the following receipts during the year ended 30 June 20X5:

(i) Rental of cabin to craftsman

$

1 August 20X4 for three months ended 31 July 20X4 360
1 November 20X4 for three months ended 31 October 360
20X4
1 February 20X5 for three months ended 31 January 360
20X5
1 May 20X5 for three months ended 30 April 20X5 420

1 August 20X5 for the three months ended 31 July 20X5 420

At 1 July 20X4 Titanium had accrued income for rent of the cabin of
$240.

(ii) Licence fees received in advance

$
1 August 20X4 for three months to 31 October 20X4 720
1 November 20X4 for three months to 31 January 20X5 780

1 February 20X5 for three months to 30 April 20X5 840
1 May 20X5 for three months to 31 July 20X5 840

At 1 July 20X4, Titanum had licence fees received in advance of $220

Required:

Prepare the ledger accounts for rental of the cabin and licence fees for
the year ended 30 June 20X5 to identify income receivable and any
closing adjustment for accrued or prepaid income.

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