Question

At 1 January 2020, Hall Attorneys had a prepaid balance of R2 000 in respect of rent. Rent of R12 000 was paid on 1 March 2020 for the year ending, 28 February 2021. What is the charge to the statement of profit or loss in respect of rent for the year ended 31 December 2020?

 A. R11 000

 B. R12 000

 C. R13 000

 D. R14 000

Answer 1

The charge to the statement of profit or loss in respect of rent for the year ended 31 December 2020 is 2,000 + 12,000 = R 14,000.

So, the correct answer is D.