If the repairs and maintenance is actually that rather than replacement of a seperately depreciated part of the assets then it goes in the P&L as an expense for the period. I would imagine that for questions at this level it is going to be exactly what it says on the tin but beware for later studies that there are occassions where subsequent expenditure is capitalised.
For insurance check the dates as there will be an element for the current period to go to the P&L and very likely an element of prepayment for the following period which will be stored in the current assets in the balance sheet until released to the P&L in the following period.
Don't know how realistic your scenario is but it might be a good idea to check the previous periods prepayments for the last periods insurance which may need releasing to P&L for this period.
all the best,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
The scenerio is not good, again working from Kaplan. They have said insurance are prepaid and office expense are accrued. So i take it everything else is an expense.
If 100% of the insurance is a prepayment (unusual even in initial questions) and the same with office expenses as an accruel then insurance would be recorded as a current asset under prepayments in the balance sheet and Office equipment would be recorded under accruels in the current liabilities section of the balance sheet.
If there are already entries in Prepayments and Accruels for the previous period check what these are for as they may need to be taken to the P&L.
If your lucky this is just an opening year set of books in which case no need to worry about brought forwards figures.
It wasn't until later studies that I swapped from BPP to Kaplan (best move I ever made) so I won't have the text that your using in my collection afraid but I'll try to help if I can.
All the best,
Shaun.
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Sorry didnt make myself clear, insurance was prepaid by £250 and office expense accrued by £50.00. But ive worked it out it was under expense. How can some days it can come to you easy and other days you forget everything...
