Test Index

JAMB Accounts Principles of Accounts 2010 Paper

Question : 44

Total: 48

How much rent is apportioned to department K?

Solution:

Concept:

Rent is shared among departments according to the floor area each department occupies.

Explanation:

Total rent to be apportioned is

\mathrm{N}3{,}000

Using the floor areas from the data, the total floor area is

60 + 40 + 50 = 150

square metres.

Department K occupies

60

square metres of this space.

So, K’s proportion of the rent is

\frac{60}{150}

K’s rent share =

\frac{60}{150} \times \mathrm{N}3{,}000 = \mathrm{N}1{,}200

Answer:

\mathrm{N}1{,}200

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