Qn 1: Electricity Expense of $420 has not been paid for. How does this affect the Financial Statements?
Ans: Electricity Expense + $420 under expenses (IS), Other Payables + $420 under current liabilities (SOFP)
Qn 2: Rental Income of $900 has not been received yet. How does this affect the Financial Statements?
Ans: Rental Income + $900 under income (IS), Other Receivables + $900 under other receivables current assets (SOFP)
Qn 4: Trade Receivables = $14000. Bad debts of $200 have not been written off yet. How does this affect the Financial Statements?
Ans: Bad debts + $200 under expenses (IS), Trade Receivables - $200 under current assets (SOFP)
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