Chp 12:
Q1: Heating and lighting for the year ended 31 December 2018 is $24000 and is paid in four
instalments of $600 every three months. The last payment covering October to December was unpaid
at the year end.
a) Prepare the entries in the ledger account and in the general journal.
b) Prepare the extract of Income statement and statement of financial position.
Heating & Lighting Account
Date Details $ Date Details $
General Journal
Date Details Debit ($) Credit ($)
Extract of Income Statement for the year ended 31 Dec 2018
$
Extract of Statement of financial Position at 31 Dec 2018
$
Q2: A business rents property from 1 July 2018. A full year’s rent is $6000 and is paid in advance on 1
July 2018. The business year ends on 31 December.
a) Prepare the entries in the ledger account and in the general journal.
b) Prepare the extract of Income statement and statement of financial position.
Rent Paid Account
Date Details $ Date Details $
General Journal
Date Details Debit ($) Credit ($)
Extract of Income Statement for the year ended 31 Dec 2018
$
Extract of Statement of financial Position at 31 Dec 2018
$
Q3: A business receives commission of $350 every three months. Amounts received for the financial
year ended 31 December 2018 are as follows:
12 March $350
17 June $350
29 September $350
The commission due in December has been delayed and will not be received until January 2019.
a) Prepare the entries in the ledger account and in the general journal.
b) Prepare the extract of Income statement and statement of financial position.
Commission Received Account
Date Details $ Date Details $
General Journal
Date Details Debit ($) Credit ($)
Extract of Income Statement for the year ended 31 Dec 2018
$
Extract of Statement of financial Position at 31 Dec 2018
$
Q4: A business has a year end of 31 December and generates income by renting out an office for
$4000 per year. Rent is received in advance, in equal instalments of $1000 on 1 January , 1 April, 1
July and 1 October. The receipts due for 1 January 2019 was received by the business on 22
December 2018
a) Prepare the entries in the ledger account and in the general journal.
b) Prepare the extract of Income statement and statement of financial position.
Rent Received Account
Date Details $ Date Details $
General Journal
Date Details Debit ($) Credit ($)
Extract of Income Statement for the year ended 31 Dec 2018
$
Extract of Statement of financial Position at 31 Dec 2018
$
