At 1 September, the motor expense account showed four months’ insurance prepaid of Sh 8,000 and petrol accrued of Sh 9,500.  During the month, the outstanding petrol bill is paid, plus further bills of Sh 24,500.  At 30 September there is a further outstanding bill of Sh 12,000.  The amount to be shown in the income statement for motor expense for September isSelect one:a.Sh 46,000b.Sh 38,500c.Sh 44,500d.Sh 41,500

To calculate the motor expense for September, we need to consider the following:

1. The prepaid insurance of Sh 8,000 for four months. Since this is prepaid, it means that the monthly insurance cost is Sh 8,000 / 4 = Sh 2,000. For September, this will be Sh 2,000.

2. The accrued petrol cost at the beginning of September is Sh 9,500. This is an expense for September since it was accrued from the previous period.

3. During September, further petrol bills of Sh 24,500 were paid. This is also an expense for September.

4. At the end of September, there is an outstanding petrol bill of Sh 12,000. This is not an expense for September since it will be paid in the future.

So, the total motor expense for September is Sh 2,000 (insurance) + Sh 9,500 (accrued petrol) + Sh 24,500 (petrol bills) = Sh 36,000.

Therefore, the correct answer is not listed in the options provided. The amount to be shown in the income statement for motor expense for September should be Sh 36,000.

To calculate the motor expense for September, we need to consider the following:

1. The prepaid insurance of Sh 8,000 for four months. Since this is prepaid, it means that the monthly insurance cost is Sh 8,000 / 4 = Sh 2,000. However, since this is prepaid, it will not be included in the motor expense for September.

2. The accrued petrol of Sh 9,500. This is an expense that has been incurred but not yet paid, so it will be included in the motor expense for September.

3. The outstanding petrol bill is paid, plus further bills of Sh 24,500. This is also an expense for September and will be included in the motor expense.

4. At 30 September there is a further outstanding bill of Sh 12,000. This is an expense that has been incurred in September but not yet paid, so it will also be included in the motor expense for September.

So, the total motor expense for September is:

Sh 9,500 (accrued petrol at the start of the month) + Sh 24,500 (further bills paid during the month) + Sh 12,000 (outstanding bill at the end of the month) = Sh 46,000

Therefore, the correct answer is:

a. Sh 46,000

To calculate the motor expense for September, we need to consider the following:

1. The prepaid insurance of Sh 8,000 for four months. Since this is prepaid, it means that the monthly insurance cost is Sh 8,000 / 4 = Sh 2,000. However, since this is prepaid, it will not be included in the motor expense for September.

2. The accrued petrol of Sh 9,500. This is an expense that has been incurred but not yet paid, so it will be included in the motor expense for September.

3. The outstanding petrol bill of Sh 9,500 is paid, which will also be included in the motor expense for September.

4. Further petrol bills of Sh 24,500 are paid, which will also be included in the motor expense for September.

5. At the end of September, there is a further outstanding bill of Sh 12,000. This is an expense that has been incurred but not yet paid, so it will also be included in the motor expense for September.

So, the total motor expense for September is:

Sh 9,500 (accrued petrol at the start of the month) + Sh 9,500 (outstanding petrol bill paid) + Sh 24,500 (further petrol bills paid) + Sh 12,000 (outstanding bill at the end of the month) = Sh 55,500

However, we need to subtract the prepaid insurance for the month of September, which is Sh 2,000.

So, the final motor expense for September is Sh 55,500 - Sh 2,000 = Sh 53,500.

None of the options provided (a. Sh 46,000, b. Sh 38,500, c. Sh 44,500, d. Sh 41,500) match this calculation. Please check the question or the options again.

To calculate the motor expense for September, we need to consider the prepaid insurance, the accrued petrol, the outstanding petrol bill paid, the further bills, and the outstanding bill at the end of the month.

1. Prepaid insurance: This is an advance payment for future expenses, so it does not count towards the motor expense for September. We can ignore the Sh 8,000.

2. Accrued petrol: This is an expense that has been incurred but not yet paid. At the beginning of September, there is an accrued petrol expense of Sh 9,500.

3. Outstanding petrol bill paid: During September, the outstanding petrol bill of Sh 9,500 is paid. This is an expense for September.

4. Further bills: During September, further bills of Sh 24,500 are paid. This is also an expense for September.

5. Outstanding bill at the end of September: At the end of September, there is an outstanding bill of Sh 12,000. This is an expense that has been incurred in September but not yet paid.

So, the total motor expense for September is the sum of the accrued petrol, the outstanding petrol bill paid, the further bills, and the outstanding bill at the end of September:

Sh 9,500 (accrued petrol) + Sh 9,500 (outstanding petrol bill paid) + Sh 24,500 (further bills) + Sh 12,000 (outstanding bill at end of September) = Sh 55,500

However, we need to subtract the initial accrued petrol (Sh 9,500) because it was an expense that was incurred before September but paid in September. So, the final motor expense for September is:

Sh 55,500 - Sh 9,500 = Sh 46,000

So, the correct answer is a. Sh 46,000.