Practice Activity 6.6 Measurement and recognition of accrued income in the financial statements

The facts are the same as practice activity 6.5.

Required: For the accounting period ended 30 June 2016, show:

i. The extract of the statement of profit or loss; and

ii.The excerpt of the statement of financial position.

Suggested answers to practice activity 6.6

i. Statement of profit or loss and other comprehensive income for the year ended 30 June 2016 (an extract)

The accrued c/d represents accrued income. Accrued income b/d is on the rent income account's debit side, and this is a current asset. Remember the elements of financial statements.

ii. Statement of financial position as at 30 June 2016 (an excerpt)