Simon Has Been in Business for a Number of Years

question 11

Multiple Choice

Simon has been in business for a number of years and has a December year end. He provides you with the following information about his rent, rates and utility bills. Annual rent paid six months in advance on 1st March and 1st September was £1 600 but was increased in September to £1 800. Gas and electricity paid £2300 in year of which £500 related to the last quarter of the previous year before prices went up. Rates which are paid annually in advance were £2400 for the previous rateable year ended 31 March and rose to £2 800 for the current rateable year.
-What should the figure for prepayments be?

• A) £0
• B) £450
• C) £1750
• D) £1150
• E) £1350