Munch Catering Ltd, whose financial year runs from 1 December to the following 30 November, maintains a
Question:
Munch Catering Ltd paid its building contents insurance premium of £547 for the year to 30 November 20X3 on 17 November 20X2. This policy was cancelled as from 31 May 20X3 and Munch Catering Ltd received a cheque for £150 as a rebate of premium on 21 June 20X3. A new buildings contents insurance policy was taken out with a different insurance company with effect from 1 June 20X3. The premium on this policy was £400 and this was paid in full by cheque by Munch Catering Ltd. on 18 May 20X3. Property taxes are assessed annually for the year from 1 April to the following 31 March and are payable in one lump sum by 30 September. Munch Catering Ltd's assessment was £840 for the year to 31 March 20X3 and £1,680 for the year to 31 March 20X4. Munch Catering Ltd paid the assessment for the year ended 31 March 20X3 by cheque on 2 October 20X2 and the assessment for the year ended 31 March 20X4 by cheque on 26 September 20X3.
Required
Prepare the 'Building occupancy costs' account for the year ended 30 November 20X3 only as it would appear in the general ledger of Munch Catering Ltd.
Step by Step Answer:
Introduction To Financial Accounting
ISBN: 978-0077138448
7th edition
Authors: Anne Marie Ward, Andrew Thomas