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Rent paid on 1st October, 2016 for the year to 30th September, 2017 was Rs.1,50,000 and rent paid on 1st October, 2017 for the year to 30th September, 2018 was Rs.1,80,000. Rent paid, as shown in the Profit and Loss account for the year ended 31st December 2017, would be:
- a)Rs.1,57,500
- b)Rs.1,50,000
- c)Rs.1,80,000
- d)Rs.1,65,000
Correct answer is option 'A'. Can you explain this answer?
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Verified Answer
Rent paid on 1st October, 2016 for the year to 30th September, 2017 wa...
Rent Expense for year ending 31st Dec 2017 = 12,500 * 9 + 15,000 * 3 = Rs 1,57,500
(Rent p.m till Sep 30th 2017 = Rs 1,50,000/12 = Rs 12,500)
(Rent p.m till from Oct 1st 2017 to Dec 31st 2017 = Rs 1,80,000/12 = Rs 15,000)
Most Upvoted Answer
Rent paid on 1st October, 2016 for the year to 30th September, 2017 wa...
Calculation of Rent for the year ended 31st December 2017:
- The rent paid on 1st October 2016 was for the year to 30th September 2017.
- Therefore, the rent for the year ended 31st December 2017 would be for the period 1st October 2016 to 31st December 2017.
- This is a period of 15 months (from October 2016 to December 2017).
- Therefore, the rent for this period would be calculated as follows:
Rent for 15 months = Rent for 12 months + Rent for 3 months
Rent for 15 months = (Rent paid on 1st October 2016 / 12) x 15 + (Rent paid on 1st October 2017 / 12) x 3
Rent for 15 months = (1,50,000 / 12) x 15 + (1,80,000 / 12) x 3
Rent for 15 months = 18,750 x 15 + 15,000
Rent for 15 months = 2,93,750
- Therefore, the rent for the year ended 31st December 2017 would be Rs.2,93,750.
- However, the question asks for the rent shown in the Profit and Loss account for the year ended 31st December 2017.
- As the rent is paid in advance, it is a prepaid expense and will be shown as an asset in the balance sheet.
- Only the rent for the period 1st January 2017 to 31st December 2017 will be shown in the Profit and Loss account for the year ended 31st December 2017.
- This is a period of 12 months.
- Therefore, the rent for this period would be calculated as follows:
Rent for 12 months = (Rent paid on 1st October 2016 / 12) x 12
Rent for 12 months = 1,50,000
- Therefore, the rent shown in the Profit and Loss account for the year ended 31st December 2017 would be Rs.1,50,000.
- The rent paid on 1st October 2016 was for the year to 30th September 2017.
- Therefore, the rent for the year ended 31st December 2017 would be for the period 1st October 2016 to 31st December 2017.
- This is a period of 15 months (from October 2016 to December 2017).
- Therefore, the rent for this period would be calculated as follows:
Rent for 15 months = Rent for 12 months + Rent for 3 months
Rent for 15 months = (Rent paid on 1st October 2016 / 12) x 15 + (Rent paid on 1st October 2017 / 12) x 3
Rent for 15 months = (1,50,000 / 12) x 15 + (1,80,000 / 12) x 3
Rent for 15 months = 18,750 x 15 + 15,000
Rent for 15 months = 2,93,750
- Therefore, the rent for the year ended 31st December 2017 would be Rs.2,93,750.
- However, the question asks for the rent shown in the Profit and Loss account for the year ended 31st December 2017.
- As the rent is paid in advance, it is a prepaid expense and will be shown as an asset in the balance sheet.
- Only the rent for the period 1st January 2017 to 31st December 2017 will be shown in the Profit and Loss account for the year ended 31st December 2017.
- This is a period of 12 months.
- Therefore, the rent for this period would be calculated as follows:
Rent for 12 months = (Rent paid on 1st October 2016 / 12) x 12
Rent for 12 months = 1,50,000
- Therefore, the rent shown in the Profit and Loss account for the year ended 31st December 2017 would be Rs.1,50,000.
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Community Answer
Rent paid on 1st October, 2016 for the year to 30th September, 2017 wa...
150000÷12=12500
,12500×9=112500
180000÷12=15000
,15000×3=45000
total rent paid for the year 2017 is
112500+45000=157500 (option A)
,12500×9=112500
180000÷12=15000
,15000×3=45000
total rent paid for the year 2017 is
112500+45000=157500 (option A)
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Rent paid on 1st October, 2016 for the year to 30th September, 2017 was Rs.1,50,000 and rent paid on 1st October, 2017 for the year to 30th September, 2018 was Rs.1,80,000. Rent paid, as shown in the Profit and Loss account for the year ended 31st December 2017, would be:a)Rs.1,57,500b)Rs.1,50,000c)Rs.1,80,000d)Rs.1,65,000Correct answer is option 'A'. Can you explain this answer?
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Rent paid on 1st October, 2016 for the year to 30th September, 2017 was Rs.1,50,000 and rent paid on 1st October, 2017 for the year to 30th September, 2018 was Rs.1,80,000. Rent paid, as shown in the Profit and Loss account for the year ended 31st December 2017, would be:a)Rs.1,57,500b)Rs.1,50,000c)Rs.1,80,000d)Rs.1,65,000Correct answer is option 'A'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Rent paid on 1st October, 2016 for the year to 30th September, 2017 was Rs.1,50,000 and rent paid on 1st October, 2017 for the year to 30th September, 2018 was Rs.1,80,000. Rent paid, as shown in the Profit and Loss account for the year ended 31st December 2017, would be:a)Rs.1,57,500b)Rs.1,50,000c)Rs.1,80,000d)Rs.1,65,000Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Rent paid on 1st October, 2016 for the year to 30th September, 2017 was Rs.1,50,000 and rent paid on 1st October, 2017 for the year to 30th September, 2018 was Rs.1,80,000. Rent paid, as shown in the Profit and Loss account for the year ended 31st December 2017, would be:a)Rs.1,57,500b)Rs.1,50,000c)Rs.1,80,000d)Rs.1,65,000Correct answer is option 'A'. Can you explain this answer?.
Rent paid on 1st October, 2016 for the year to 30th September, 2017 was Rs.1,50,000 and rent paid on 1st October, 2017 for the year to 30th September, 2018 was Rs.1,80,000. Rent paid, as shown in the Profit and Loss account for the year ended 31st December 2017, would be:a)Rs.1,57,500b)Rs.1,50,000c)Rs.1,80,000d)Rs.1,65,000Correct answer is option 'A'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Rent paid on 1st October, 2016 for the year to 30th September, 2017 was Rs.1,50,000 and rent paid on 1st October, 2017 for the year to 30th September, 2018 was Rs.1,80,000. Rent paid, as shown in the Profit and Loss account for the year ended 31st December 2017, would be:a)Rs.1,57,500b)Rs.1,50,000c)Rs.1,80,000d)Rs.1,65,000Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Rent paid on 1st October, 2016 for the year to 30th September, 2017 was Rs.1,50,000 and rent paid on 1st October, 2017 for the year to 30th September, 2018 was Rs.1,80,000. Rent paid, as shown in the Profit and Loss account for the year ended 31st December 2017, would be:a)Rs.1,57,500b)Rs.1,50,000c)Rs.1,80,000d)Rs.1,65,000Correct answer is option 'A'. Can you explain this answer?.
Solutions for Rent paid on 1st October, 2016 for the year to 30th September, 2017 was Rs.1,50,000 and rent paid on 1st October, 2017 for the year to 30th September, 2018 was Rs.1,80,000. Rent paid, as shown in the Profit and Loss account for the year ended 31st December 2017, would be:a)Rs.1,57,500b)Rs.1,50,000c)Rs.1,80,000d)Rs.1,65,000Correct answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
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Rent paid on 1st October, 2016 for the year to 30th September, 2017 was Rs.1,50,000 and rent paid on 1st October, 2017 for the year to 30th September, 2018 was Rs.1,80,000. Rent paid, as shown in the Profit and Loss account for the year ended 31st December 2017, would be:a)Rs.1,57,500b)Rs.1,50,000c)Rs.1,80,000d)Rs.1,65,000Correct answer is option 'A'. Can you explain this answer?, a detailed solution for Rent paid on 1st October, 2016 for the year to 30th September, 2017 was Rs.1,50,000 and rent paid on 1st October, 2017 for the year to 30th September, 2018 was Rs.1,80,000. Rent paid, as shown in the Profit and Loss account for the year ended 31st December 2017, would be:a)Rs.1,57,500b)Rs.1,50,000c)Rs.1,80,000d)Rs.1,65,000Correct answer is option 'A'. Can you explain this answer? has been provided alongside types of Rent paid on 1st October, 2016 for the year to 30th September, 2017 was Rs.1,50,000 and rent paid on 1st October, 2017 for the year to 30th September, 2018 was Rs.1,80,000. Rent paid, as shown in the Profit and Loss account for the year ended 31st December 2017, would be:a)Rs.1,57,500b)Rs.1,50,000c)Rs.1,80,000d)Rs.1,65,000Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Rent paid on 1st October, 2016 for the year to 30th September, 2017 was Rs.1,50,000 and rent paid on 1st October, 2017 for the year to 30th September, 2018 was Rs.1,80,000. Rent paid, as shown in the Profit and Loss account for the year ended 31st December 2017, would be:a)Rs.1,57,500b)Rs.1,50,000c)Rs.1,80,000d)Rs.1,65,000Correct answer is option 'A'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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