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4 marksAccruals and Prepayments

CSEC Principles of Accounts · January 2009 · Paper 2 · Question 2(c)

Rennie Joseph incurred rates payments: December 1, 2007 prepaid rates b/f 200; January 1, 2008 quarter year's rates paid by cheque 600; March 31, 2008 half year's rates paid $1 200.

Prepare the Rates Account in the books of Rennie Joseph for the six-month period ending May 31, 2008, showing the amount to be transferred to the Profit and Loss Account.

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Other parts of this question

  1. 2(a)(i)State whether the statement is True (T) or False (F): Accounting records business activities that cause changes in money value.[1 mark]
  2. 2(a)(ii)State whether the statement is True (T) or False (F): Accounting reports are useful for good decision-making.[1 mark]
  3. 2(a)(iii)State whether the statement is True (T) or False (F): Government tax agencies use accounting information to compute taxes.[1 mark]
  4. 2(a)(iv)State whether the statement is True (T) or False (F): Accounting can ensure that profits are made.[1 mark]
  5. 2(a)(v)State whether the statement is True (T) or False (F): Business qualities such as reliability and good service can be accounted for.[1 mark]
  6. 2(b)(i)Indicate which of the five transactions would normally be entered in another book of original entry.[1 mark]
  7. 2(b)(ii)Prepare the General Journal of Rennie Joseph as at November 30, 2007.[10 marks]

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