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    FSharrif01's Avatar
    FSharrif01 Posts: 1, Reputation: 1
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    #1

    Dec 6, 2013, 11:59 AM
    Accruals and prepayments PLEASE HELP?
    The question says:
    Rachel and Finn are shareholders and directors of Westend Office Supplies Limited. The directors have offered you a fee of £15,000 to prepare the accounting records for the year ended 31 March 2011: you will receive the fee upon completion. At 31 March 2010 the prepayments balance of 3,000 is for telephone expenses and the accruals balance of 12,000 relates to accountancy fees. Westend Office Supplies Limited Ltd has made the following cash payments in the year to 31 March 2011. Telephone £15,500 (1 June 2010 to 31 March 2011), Accountancy fees 12000 (1 April 2009 to 31 March 2010) and Repairs and maintenance 44000 (1 April 2010 to 31 Jan 2011).


    So my question is how would you account for these in the ledger a/Cs
    Please help my exam is approaching soon and I want to make sure I clear up any issues in time
    paraclete's Avatar
    paraclete Posts: 2,706, Reputation: 173
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    #2

    Dec 9, 2013, 12:25 AM
    well what issues do you have?

    you have a clear statement of what will be outstanding at year end you have opening balances that will require adjustment.

    Period based costs relate to the period given and can be assumed to be incurred at a uniform rate unless otherwise stated

    so let's see you calculations

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