A		Requirement:
		Explain the accruals concept as it applies to financial accounting.							2
B		The rent payable by Tony Teapot for premises is /146,748 per year payable quarterly in arrears in equal instalments on 31 March, 30 June, 30 September and 31 December each year.
		In 2020, Tony Teapot made all the payments on the due dates except for the payment due on 31 December, which was not paid until 10 January 2021.
		Requirements:
1.		Prepare the rent expense ledger account for the year ended 31 December 2020;							5
2.		Draft the accounting journal that transfers the rent expense for 2020 to the income statement for the year ended 31 December 2020.							3
C		Tony Teapot owns another premises which is sublet at a rent of /97,016 per annum, with periodic amounts receivable in advance on 1 January, 1 April, 1 June and 1 November each year.
		At 31 December 2020, two amounts had been received: /24,254 on each of 1 January and 1 April.
		Requirements:
3.		Prepare the rental income ledger account for the year ended 31 December 2020.							5
4.		Draft the accounting journal that transfers the rental income for 2020 to the income statement for the year ended 31 December 2020.							3
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