PRC-1 · Chapter 4 · Question 94 of 100
Opening unearned rent was Rs. 10,000. Cash received for rent during the year was Rs. 120,000. Ending unearned rent is Rs. 15,000. What is the rent income for the year?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Rs. 115,000
Explanation
Income = Opening Unearned (10,000, earned this year) + Cash Received (120,000) - Closing Unearned (15,000, earned next year) = Rs. 115,000.
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