# IndiaQuestion from accruals and prepayments

#### SRINIVASA

Amounts owed by a trader for electricity are given below

1 January 2000
31 December 2500

The charge for electricity shown in the income statement for the year
ended 31 December was \$ 15 500.

What was the amount paid for electricity during the year ?

Options :
A) 15 000
B) 15 500
C) 16 000
D) 20 000

Please explain in detail, Thank you !

#### Triest123

VIP Member
Electricity charge for the year = Bank paid - Opening A/P + Closing A/P

Bank paid = Electricity charge for the year + Opening A/P - Closing A/P
= 15,500 + 2,000 - 2,500
= 15,000

#### SRINIVASA

Electricity charge for the year = Bank paid - Opening A/P + Closing A/P

Bank paid = Electricity charge for the year + Opening A/P - Closing A/P
= 15,500 + 2,000 - 2,500
= 15,000
Excellent Sir, Thanks so much...with best regards Srinivasa

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