Acca financial Accounting (FA) Study Text ac ca (FA)

What should be the correct entries for electricity in Lansdown’s 

statement of profit or loss and statement of financial position for the 

year ended 31 December 20X5? 

$

Statement of profit or loss 

Statement of financial position 

Accrual/prepayment* 

* delete which does not apply

29 At 1 January 20

0

5, Michael had a prepayment of $200 in respect of rent. 

He paid $1,200 on 1 March 20

0

5 in respect of the year ended 28 

February 20

0

6. 

What was the charge to the statement of profit or loss in respect of 

rent for the year ended 31 December 20

0

5? 

$________ 

30  At 31 December 2003, Tony had accrued $240 in respect of light and heat 

for the quarter ending 31 December 20X3. In January 2004 he discovered 

that he had under-accrued by $10. 

The bills for the next four quarters were as follows (q.e. = quarter ended):