Computation of rent value (single entry chapter)

IPCC 550 views 9 replies

Harish Kumar

IPCC

475 Points Joined June 2012

31-3-2005	31-3-2006
2400	3000

Please Solve it Given

RENT (O/S for one month)

Additional information

1. Rent has been increased from jan. 2006

2. Mr. X deposit all cash sales and collection from debtors after meeting wages, shop expenses,rent,electricity and telephone charges.

3. Rs. 6500 PM towards wages

4. Electricity and telephone charges Rs. 24000(paid)

5. Shop expenses Rs. 18000 (paid)

6. Cash sale Rs. 297500 & Collection from Dr. Rs. 876600

Ans:-

Rent paid	30000
Less: O/S	(2400)
Add: O/S	3000

PLZ compute this Rent paid 30000 kaise calculate hua plz explain

MAY 2006 IPCC Exam Question

Replies (9)

CMA Poornima Madhava

CMA

13117 Points Joined May 2009

If we assume that the increase in rent for jan06 is effective from feb, then

Rent:

@ 2400 for 10 months (from apr to jan 06) = 24000

@ 3000 for 2 months (for feb & mar 06) = 6000

If bank balance was given, it could have been verified I think.

Harish Kumar

IPCC

475 Points Joined June 2012

Bank balance is in 2005 Rs. 108400 in 2006 Rs. 2500

Harish Kumar

IPCC

475 Points Joined June 2012

Bank balance is in 2005 Rs. 108400 in 2006 Rs. 2500

Harish Kumar

IPCC

475 Points Joined June 2012

Ok but one month o/s rent what does it mean........ Can u explain this plz......!!

CMA Poornima Madhava

CMA

13117 Points Joined May 2009

If I consider bank balance, it does not add up because I think the problem is limited to rent a/c only. Outstanding rent means rent which is booked as exps but not yet paid.

Harish Kumar

IPCC

475 Points Joined June 2012

Ok but o/s rent for 1 month does not effect in Rs. 30000

Nihar Ranjan Rout

CA Final & CS Final

577 Points Joined August 2012

@ Harish I think it is an extract of some question and not a question in itself. Nevertheless rent paid is: 1-2400 for 10 months,i.e. April to January =24000 2-3000 for 2 months,i.e. February to March =6000. Total being 30000

Nihar Ranjan Rout

CA Final & CS Final

577 Points Joined August 2012

The part where it says o/so for 1 month is nothing but the person pays the rent by a delay of 1 month. So he pays 2400 rent due for march in month of April and April's rent in may. This way he pays 2400 for 10 months during the year. Whereas 3000 of January he pays in February and February's in march,amount being 6000 for 2 months. Hence, total being 30000 during the year.