Rental income in the statement of profit or loss ( video below)
XYZ , a limited liability company, receives rent for subletting part of its office premises to a number of tenants.
In the year ended 31 December 20X7 XYZ received cash of $79,650 from its tenants.
Details of rent in advance and in arrears at the beginning and end of 20X7 are as follows:
| 31 December | ||
| 20X7 | 20X6 | |
| $ | $ | |
| Rent received in advance | 7,100 | 6,150 |
| Rent owing by tenants | 4,575 | 4,225 |
All rent owing was subsequently received
What figure for rental income should be included in the statement of profit or loss of XYZ for 20X7?
Answer
| RENTAL INCOME ACCOUNT | |||
| $ | $ | ||
| Opening rent owing | 4,225 | Opening rent in advance | 6,150 |
| Rent income (balancing figure) | 79,050 | Cash received | 79,650 |
| Closing rent in advance | 7,100 | Closing rent owing | 4,575 |
| 90,375 | 90,375 | ||
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