Definition and recognition of financial statement elements

On 30 April 20X7, AccSol Ltd paid $30 000 for office rent for the following six months May to October 20X7. The financial year ends on 30 June.

Required:

a). Apart from a decrease in cash at bank, using the conceptual framework definition and recognition criteria of the elements of the financial statements, explain what element of the financial statements should be recognised with regard to the above transaction by AccSol Ltd on 30 April 20X7.

b). explain how this question is relevant and faithfully represented? (200 words)