On the 30/5/93 Tolu & Co. paid 2 years rent of N50,000 which was debited to the rent account.

The adjustment needed as at 31st December 1993 is?

  • A debit rent account and credited adjustment account
  • B debit prepayment account and credit rent account
  • C debit rent account and credit prepayment account
  • D debit adjustment account and credit prepayment account
jamb 1997accounting

The correct answer is B. debit prepayment account and credit rent account

No explanation given
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