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The amount to be charged to the profit and loss account is?

Given:
Prepaid b/f…………………..N10 000
Cash paid during the year………N20 000
The amount to be charged to the profit and loss account is?
  • A.
    N30 000
  • B.
    N25 000
  • C.
    N5 000
  • D.
    20 000
Correct Answer: Option B
Explanation