PRC-1 · Chapter 4 · Question 98 of 100
MPD received Rs. 720,000 rent. Opening advance was Rs. 50,000, Closing advance is Rs. 45,000. Opening accrued was Rs. 80,000, Closing accrued is Rs. 100,000. What is the rental income to be recognized?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Rs. 745,000
Explanation
Income = Cash Received (720k) + Beg Unearned (50k) - End Unearned (45k) - Beg Accrued (80k) + End Accrued (100k) = Rs. 745,000.
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