Annual rent of ₦30,000 is receivable on or before the last day of every month. The reporting entity’s accounting period is from 1 July to 30 June. Information about the amount, the date the rent income was due to be received, and date the rent income was received, and the amount that was received are provided as follows:
Required: Show the double entry of rent income received.
A suggested solution to practice activity 6.11
The rent income account in the ledger is as follows:
Debit Cash book (that is, the cash or bank column in the cash book)
Credit Rent income account
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