ACCRUAL EXAMPLE/ Rent paid during financial year ended 31st March 2009 was £7200. Rent of £500 for March 2009 was paid in April 2009. How should the accountant record this?
As a result of accrual concept, the total rent recorded will be as follows: £7200 This is because the business has had the benefit of using the premises worth £7700 even though it has only paid rent worth £7200.
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