Reference no: EM131385744
On 1 January 2015 the following balances, among others, stood in the books of A. Cook, a sole proprietor:
(a) Business rates, £600 (Dr);
(b) Packing materials, £1,400 (Dr).
During the year ended 31 December 2015 the information related to these two accounts is as follows:
(i) Business rates of £6,200 were paid to cover the period 1 April 2015 to 31 March 2016;
(ii) £4,000 was paid for packing materials bought;
(iii) £900 was owing on 31 December 2015 in respect of packing materials bought on credit;
(iV) Old materials amounting to £300 were sold as scrap for cash;
(v) Closing inventory of packing materials was valued at £2,400.
You are required to write up the two accounts showing the appropriate amounts transferred to the statement of profit or loss at 31 December 2015, the end of the financial year of the trader.
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