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 is Select one: a. Sh 46,000 b. Sh 38,500 c. Sh 44,500 d. Sh 41,500

To solve this problem, we need to calculate the total motor expense for the month of September. Here are the steps:

1. Start with the prepaid insurance of Sh 8,000 for four months. Since this is prepaid for four months, the cost for one month (September) would be Sh 8,000 / 4 = Sh 2,000.

2. Next, consider the petrol costs. At the beginning of the month, there was an accrued petrol cost of Sh 9,500. During the month, further bills of Sh 24,500 were paid. So, the total petrol cost paid during the month is Sh 9,500 (accrued from last month) + Sh 24,500 (paid this month) = Sh 34,000.

3. However, at the end of the month, there is still an outstanding bill of Sh 12,000. This is an expense that has been incurred but not yet paid, so it should also be included in the motor expense for September.

4. Add up all these costs to get the total motor expense for September: Sh 2,000 (insurance) + Sh 34,000 (petrol paid) + Sh 12,000 (outstanding petrol bill) = Sh 48,000.

So, none of the options provided (a. Sh 46,000, b. Sh 38,500, c. Sh 44,500, d. Sh 41,500) match the calculated total motor expense for September (Sh 48,000). There might be a mistake in the question or the provided options.

To solve this problem, we need to calculate the total motor expense for the month of September. Here are the steps:

1. Start with the prepaid insurance of Sh 8,000 for four months. Since this is prepaid, we need to calculate the expense for one month (September). This is Sh 8,000 / 4 = Sh 2,000.

2. Next, consider the petrol costs. At the start of the month, there was an accrued expense of Sh 9,500. This was paid during the month, so it is part of the September expense.

3. During the month, further petrol bills of Sh 24,500 were paid. This is also part of the September expense.

4. At the end of the month, there was an outstanding bill of Sh 12,000. This is an expense incurred in September, so it should also be included.

5. Add up all these amounts to get the total motor expense for September: Sh 2,000 (insurance) + Sh 9,500 (accrued petrol) + Sh 24,500 (further petrol bills) + Sh 12,000 (outstanding bill) = Sh 48,000.

So, the correct answer is not listed among the options. There might be a mistake in the question or the provided options.

To solve this problem, we need to calculate the total motor expense for the month of September.

Here are the steps:

1. Start with the prepaid insurance of Sh 8,000 for four months. Since this is a prepaid expense, we need to divide it by the number of months to get the monthly expense. So, 8,000 / 4 = Sh 2,000. This is the insurance expense for September.

2. Next, consider the petrol expenses. At the beginning of the month, there was an accrued expense of Sh 9,500. This means that this amount was owed but not yet paid. During the month, this bill is paid, so we add it to the total expenses.

3. In addition to the accrued expense, further petrol bills of Sh 24,500 were paid during the month. Add this to the total expenses.

4. At the end of the month, there is a further outstanding bill of Sh 12,000. This is an accrued expense, which means it is an expense for September that has not yet been paid. Therefore, we add it to the total expenses.

So, the total motor expense for September is:

2,000 (insurance) + 9,500 (accrued petrol from August) + 24,500 (additional petrol bills paid in September) + 12,000 (accrued petrol for September) = Sh 48,000

However, this option is not available in the choices. It seems there might be a mistake in the problem or the options provided.