Heing's, a limited liability company, receives rent for subletting part of its office premises to a number of tenants. In the year ended 31 December 20X4 B received cash of $320,800 from its tenants. Details of rent in advance and in arrears at the beginning and end of 20X4 are as follows: 31 December 20X4 20X3 $ $ Rent received in advance 29,600 28,800 Rent owing by tenants 19,500 17,900 All rent owing was subsequently received What figure for rental income should be included in the statement of profit or loss of Heing's for 20X4?
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Heing's, a limited liability company, receives rent for subletting part of its office premises to a number of
tenants.
In the year ended 31 December 20X4 B received cash of $320,800 from its tenants.
Details of rent in advance and in arrears at the beginning and end of 20X4 are as follows:
31 December
20X4 20X3
$ $
Rent received in advance 29,600 28,800
Rent owing by tenants 19,500 17,900
All rent owing was subsequently received
What figure for rental income should be included in the statement of profit or loss of Heing's for 20X4?
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