Arjun's Business Pays Rent Quarterly in Advance

Multiple Choice

Arjun's business pays rent quarterly in advance. The business year end is 31 December 2023 and the trial balance at that date shows a figure for rent of £2,150, before any adjustments. On 1 December 2023, Arjun had paid rent of £570 for the three months to the end of February 2024. His accounts for the year ended 31 December 2023 should show the following:

A) The rent expense charged in the statement of profit or loss should be £1,580.
B) The rent expense charged in the statement of profit or loss should be £2,150.
C) The rent expense charged in the statement of profit or loss should be £2,530.
D) The rent expense charged in the statement of profit or loss should be £1,770.