A company has sublet part of its offices and in the year ended 30 November 2003 the rent receivable was:

Until 30 June 2003                             $8,400 per year
From 1 July 2003                               $12,000 per year

Rent was paid quarterly in advance on 1 January, April, July, and October each year.

What amounts should appear in the company’s financial statements for the year ended 30 November 2003?

      Income statement
      Rent receivable                                Balance sheet

A    $9,900                                              $2,000 in sundry payables
B    $9,900                                              $1,000 in sundry payables
C    $10,200                                            $1,000 in sundry payables
D    $9,900                                              $2,000 in sundry receivables

B
(7/12 x 8,400) + (5/12 x 12,000) = 9,900
1,000 paid in advance in sundry payables