Use the following information to answer this questions.
Rent prepaid – 1/01/2014 – N600
Rent paid – 31/12/2014 – N3,000
Rent prepaid – 31/12/2014 – N400.
Rent for 2014 chargeable to the profit and loss account is
- A. N4,000
- B. N3,000
- C. N3,200
- D. N2,800
Correct Answer: Option B
Explanation
The profit and loss (P&L) statement is a financial statement that summarizes the revenues, costs and expenses incurred during a specified period, usually a fiscal quarter or year. 3000 is the only expenses incured within the year. other payments were made in advance.