PRC-1 · Chapter 4 · Question 28 of 100
'Luminous Properties' received Rs. 500,000 cash from tenants during the year. Opening rent receivable was Rs. 40,000 and closing rent receivable is Rs. 60,000. Opening unearned rent was Rs. 20,000 and closing unearned rent is Rs. 10,000. What is the total rental income for the year?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Rs. 530,000
Explanation
Income = Cash Received (500,000) - Opening Receivable (40,000) + Closing Receivable (60,000) + Opening Unearned (20,000) - Closing Unearned (10,000) = Rs. 530,000.
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