A basic test on prepayments:
You are working on the accounting records of a business for the year ended 31 March 20X7. You are looking at the rent expense for the year and this includes payments for the following periods:
| Apr 20X6 – May 20X7- Office 1 |
£5,040 |
| Apr 20X6 – Jan 20X7- Office 2 |
£5,500 |
| Jul 20X6 – Jun 20X7- New Office |
£7,380 |
Identify the prepayments that need to be posted into the accounts?
| Account name |
Amount (£) |
Dr/ Cr |