Question
John Waterman runs his own business and his accounting year ends on 31 December. The businesss books showed an accrual in connection with electricity of
John Waterman runs his own business and his accounting year ends on 31 December.
The businesss books showed an accrual in connection with electricity of 770 as at 31 December 2020 and an accrual of 820 as at 31 December 2021.
The cash book revealed that the business paid a total of 5,655 for electricity during 2021.
What figure should appear for electricity expense in the Statement of Profit or Loss (or Income Statement) of Watermans business for its year ended 31 December 2021
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Principles Of Financial Accounting
Authors: Jerry J. Weygandt, Lorena Mitrione, Michaela Rankin, Keryn Chalmers, Paul D. Kimmel
3rd Edition
0730302296, 978-0730302292
