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?
A debit rent account and credited adjustment account
B debit prepayment account and credit rent account
C debit rent account and credit prepayment account
D debit adjustment account and credit prepayment account
Answer is C
