PRC-1 · Chapter 4 · Question 32 of 100
'Grand Properties' received Rs. 850,000 cash for rent during the year. The opening rent in arrears was Rs. 50,000, and the closing rent in arrears is Rs. 70,000. The opening rent received in advance was Rs. 30,000, and the closing rent in advance is Rs. 40,000. What is the total rental income to be recognized for the year?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Rs. 860,000
Explanation
Income = Cash Received (850,000) - Opening Arrears (50,000) + Closing Arrears (70,000) + Opening Advance (30,000) - Closing Advance (40,000) = Rs. 860,000.
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