JAMB Accounting 2007 Objective — Question 35

Question 35 of 46 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2007 Objective paper, with the correct answer and a full explanation.

Given: Prepaid b/f 10,000; Cash paid during the year 20,000; Prepaid c/f 5,000. The amount to be charged to the profit and loss account is

A. #30,000
B. #25,000Correct
C. #5,000
D. #20,000

Explanation

Amount charged to P&L (Expense a/c) = Prepaid b/f + Cash paid - Prepaid c/f = 10,000 + 20,000 - 5,000 = #25,000.

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