a)Accounting concepts are the broad principles and general assumptions underlying the preparation of financial statements. In line with IFRS Conceptual Framework on the fundamental assumptions underlying the preparation of financial statements.

Required:

i) Differentiate between cash and accrual bases, of accounting. (2Marks)

c) Mpapale owns several properties in Sega which are let out to tenants. The summary of transactions at December 31, 2019 is given below:

Sh.000

Accrued rent at December 31, 2018440

Prepaid rent at December 31, 2018250

Rent received during 20192,550

Accrued rent at December 31, 2019350

Prepaid rent at December 31, 2019480

Uncollectable rent to be written-off35

Agreement fee received50

Required:

Prepare rental Income Account to determine the amount of rent to be recognized in the statement of profit or loss. (3 Marks