1. At 31 December Year 7 there was a prepayment for rent of 10,000. During Year 8100,000 was paid for rent and at 31 December Year 8 there was an accrual for rent of 15,000. What figure will appear for rent in the profit and loss account for Year 8: A. 95,000 B. 75,000 C. 105,000 D. 125,000 2. The accounting equation states: A. Capital - Liabilities = Assets B. Capital + Liabilities = Assets C. Assets + Liabilities = Capital D Assets + Capital = Liabilities 3. At 31 December Year 6 a sole trader had assets of 400,000 and liabilities of 100,000. 12 months later, on 31 December Year 7, the assets were 700,000 and the liabilities were 190,000. Assuming the sole trader had drawings in Year 7 of 50,000 and no new capital was introduced in Year 7 what is the profit for Year 7: A. 260,000 B. 210,000 C. 560,000 D. None of the above