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Martino Ltd is a furniture store operating in the inner Melbourne area. On 1 May 2019 the business paid Nisbet Real Estate $9,600 for rent
Martino Ltd is a furniture store operating in the inner Melbourne area. On 1 May 2019 the business paid Nisbet Real Estate $9,600 for rent for the next 12 months. The financial year for Martino and Nisbet ends on 30 September 2019. Assume Nisbet Real Estate has a policy of using a Liability approach to recording such receipts.
Required:
Prepare the journal entries (narrations are NOT required) to record:
- The original journal entry in the books of Nisbet to record the $9,600 rent received.
- The necessary adjustments on 30 September 2019.
- The closing entry on 30 September 2019.
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Particulars |
Debit
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Credit |
a) |
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b) |
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c) |
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- What effect would there on the Balance Sheet and P/L if entry (b) was not made?
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