To solve the given questions, let's go step-by-step:
### Question 17: Rent for 2014 chargeable for the profit and loss account
The steps to determine the rent chargeable for the profit and loss account involve:
1. Total rent paid during the year
2. Rent prepaid at the start of the year (1/01/14)
3. Rent prepaid at the end of the year (31/12/14)
Given :
- Rent prepaid on 1/01/14 is N/A, which we assume to be 0 Naira.
- Rent paid during the year 2014 is 600 Naira.
- Rent prepaid on 31/12/14 is 300 Naira.
The formula to calculate rent chargeable for 2014 is:
[tex]\[ \text{Rent chargeable for 2014} = \text{Rent paid during 2014} + \text{Rent prepaid at the end of 2014} - \text{Rent prepaid at the start of 2014} \][/tex]
Plugging in the given values:
[tex]\[ \text{Rent chargeable for 2014} = 600 + 300 - 0 \][/tex]
[tex]\[ \text{Rent chargeable for 2014} = 900 \][/tex]
So, the rent chargeable for the profit and loss account for the year 2014 is 900 Naira. None of the options a, b, or c match 900 Naira:
a. N4000
b. N3000
c. N2800
Therefore, none of the provided options in question 17 are correct.
### Question 18: The balance sheet as at 31st December 2014 will show a current asset
The balance sheet must show the prepaid rent as a current asset at the end of the year. Since the rent prepaid on 31/12/14 is 300 Naira, this amount will be shown as a current asset in the balance sheet.
Correct option: The balance sheet shows a current asset of 300 Naira. None of the provided options of 600 Naira are correct, so the current asset is:
a. N600 (Incorrect)
b. The question seems to be incomplete, but based on the provided data, the correct current asset value is N300, not listed in the options.
Thus, the rent for 2014 chargeable for the profit and loss account is 900 Naira, and the balance sheet as at 31st December 2014 will show a current asset of 300 Naira.
