On the 30/5/93 Tolu & Co. paid 2 years rent of N50,000 which was debited to the rent account.
The adjustment needed as at 31st December 1993 is?
Debit rent account and credited adjustment account
Debit prepayment account and credit rent account
Debit rent account and credit prepayment account
Debit adjustment account and credit prepayment account
Correct answer is C
No explanation has been provided for this answer.