A basic test on prepaid income:
You are working on the accounting records of a business for the year ended 31 March 20X7. You are looking at the rent income for the year and this includes receipts for the following periods:
| Apr 20X6 – Mar 20X7 |
£5,040 |
| Apr 20X6 – Jun 20X7 |
£5,625 |
Identify the prepaid income that need to be posted into the accounts?
| Account name |
Amount (£) |
Dr/ Cr |