Tricky Adjustment of NPO Receipts and Payments Account

The video tutorial explains the adjustments needed for NPO receipts and payments, focusing on rent expenses. It covers calculating monthly rent, determining current year expenses, identifying prepaid expenses, and understanding hidden adjustments for previous years. The tutorial concludes with guidance on posting these adjustments to the expenditure side.

What is the monthly rent calculated from the total payment of 18,000 for 18 months?

• 500 per month

• 2,000 per month

• 1,000 per month

• 1,500 per month

For how many months should the rent expense be considered for the current year?

• 18 months

• 15 months

• 3 months

• 12 months

How many months of rent are considered prepaid after the fiscal year ends on March 31st?

• 12 months

• 9 months

• 3 months

• 6 months

What is the hidden adjustment related to the rent payment?

• Additional rent for the current year

• Prepaid rent for the next year

• Outstanding rent for the previous year

• Discount on rent payment

How should the total payment of 18,000 be posted in the accounts?

• Only as prepaid rent

• As a single entry without adjustments

• With adjustments for prepaid and outstanding rent

• Only as outstanding rent