Page 151 - F3 -FA Integrated Workbook STUDENT 2018-19

Accruals and prepayments

Example 2 cont.

Accrued and prepaid income

Solution

Rental of cabin
Details $ Details $
Balance b/d 240
Profit or loss (β figure) 1,540 Cash received in year 1,500

(360 + 360 + 360 + 420)
Balance c/d (2/3 × $420) 280
––––– –––––
1,780 1,780

––––– –––––
Balance b/d 280

Licence fees

Details $ Details $
Balance b/d 220
Profit or loss (β figure) 3,120 Cash received in year 3,180
Balance c/d (1/3 × $840) 280 (720 + 780 + 840 + 840)
––––– –––––

3,400 3,400
––––– –––––
Balance b/d 280

Illustrations and further practice

Now try question TYU 4 from Chapter 10 of the Study Text.

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