WAEC Accounting 2021 Paper

Concept:Annual rent expense is the monthly rent payable multiplied by 12 months.Explanation:Monthly rent payable = GH¢ $3{,}000$.Annual rent expense = $3{,}000 \times 12 = 36{,}000$.This gives an annual rent expense of GH¢ $36{,}000$.The rent paid of GH¢ $48{,}000$ is more than the rent expense for the year.The excess amount is GH¢ $48{,}000 - 36{,}000 = 12{,}000$.This excess is treated as prepaid rent.Therefore, the rent expense charged for 2018 is GH¢ $36{,}000$.Answer:GH¢ $36{,}000$ — Option C.