a Explain how the accruals principle affects the information to be disclosed within an income statement.

b Write up the relevant general ledger accounts of Polly Harris for the year ended 30 April 2009 for the following information:

(i) She had opening unsold inventory of £50,000, and £60,000 unsold inventory a year later.

(ii) She paid £4,000 for telephone charges during the year for 10 months' usage, but the final two months are owing. The next quarter's bill is expected to be £1,350.

(iii) She paid £15,000 at the very start of the year for rent for the first six months and then paid £22,500 on 1 November 2008. The monthly rent did not change during the period.