The following figures related to the rent and rates payable expense for a business in 2020-2021. Which is the correct figure for rent and rate expense in the profit and loss account for the year ended 31 March 2021?
| Rent paid in advance at 1 April 2020 Rs.5000 |
| Rates in arreas at 1 April 2020 Rs.2000 |
| Payments in 2020-21 Rs.35000 |
| Prepaid rent at 31 March 2021 Rs.4000 |
| Rent in arrears at 31 March 2021 Rs.6000 |
Rent and rate expense in the profit and loss account = Payments + Rent paid in advance on 1 April 2020 – Rent prepaid on 31 March 2021 – Arrears on 1 April 2020 + Arrears on 31 March 2021 = 35000 +5000 -4000 -2000 +6000 = Rs.40000
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