Question

A business received rent from a tenant amounting to £38,000 during the year. The tenant had prepaid £4,000 by the beginning of the year and the rent receivable for the year is £36,000. What is the balance at the year​ end?

Answer 1

2,000

Step-by-step explanation:

Rent received during the year

rent_received = 38000

Rent prepaid by the beginning of the year

rent_prepaid = 4000

Rent receivable for the year

rent_receivable = 36000

Balance at the year end

balance = rent_receivable - (rent_received - rent_prepaid)