WAEC Accounting 2023 Paper

Concept:Rent expense means the rent actually incurred in 2020, so cash paid must be adjusted for amounts relating to other years.Explanation:Cash paid for rent during the year is $\mathrm{D}\,22{,}400$. Rent owing at 1 January 2020 of $\mathrm{D}\,1{,}860$ belongs to the previous year, so deduct it. Rent prepaid at 31 December 2020 of $\mathrm{D}\,2{,}280$ belongs to the next year, so deduct it too. Therefore, rent expense for 2020 $= 22{,}400 - 1{,}860 - 2{,}280 = \mathrm{D}\,18{,}260$.Answer:B. $\mathrm{D}\,18{,}260$