PRC-1 · Chapter 4 · Question 69 of 100
In the year to 31 December 2018, Saira received Rs. 50,800 rental income in cash. Rent received in advance was Rs. 3,000 (2017) and Rs. 4,000 (2018). Rent in arrears was Rs. 1,700 (2017) and Rs. 2,500 (2018). What is the rental income to be reported?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Rs. 50,600
Explanation
Income = Cash Received (50,800) + Opening Advance (3,000) - Closing Advance (4,000) - Opening Arrears (1,700) + Closing Arrears (2,500) = Rs. 50,600.
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