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Chapter 12

Example 4

Commencing 1 July 20X5, a business entity rented out a property to a tenant
at $5,000 per month. During the year ended 30 June 20X6, it received $64,000
cash from the tenant.

Required:

What was the rental income receivable for the year ended 30 June 20X6,
and the liability for prepaid income received in the statement of financial
position at 30 June 20X6?

Example 4: Solution

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