Practice activity 6.9 The effects of rent expense paid in the financial statements

The facts are the same as practice activity 6.8.

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

i. Extract of the statement of profit or loss; and

ii.Excerpt of the statement of financial position at the same date.

Suggested answers to practice activity 6.9

i. Statement of profit or loss 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. Excerpt of the statement of financial position as at 30 June 2016