If a business has paid rent of $1000 for the year to 31 March 2009. what is the prepayment in the account for the year to 31 December 2008?

Option B is the right answer.

B) $250 AS THE QUESTION SAYS $1000 IS FOR WHOLE YEAR UP TO31ST MARCH09 AND PREPAYMENT AS AT31ST DECEMBER08 WOULD BE FOR3MTHS.

THEREFORE =1000*3/12= $250 

Prepaid as on31st December is $250...

Rent advance250-----------------------

D. $200. The total number of months will be15 thus12 months for2008 and3 months within2009. To obtain amount per month = total paayment / number of months; this implies $1,000/15 = $66.67.

If the business prepares account to31/12/2008 then3months prepayment has been maade hence $66.67 x3months = $199.99 aproximately $200

The prepaid Expenses = (/ )×3=$ 

The answer is B 

B. $...............

..............

Option B is the answer. Prepayment as on  st December is (\\)*3 which is $.