You owed 500 to the telephone company at 31 December 2007. During the year to 31 December

Question:

You owed £500 to the telephone company at 31 December 2007. During the year to 31 December 2008 you paid the company £4000. At 31 December 2008 you owed the company £1000.
What amount for telephone charges would you debit to the profit and loss account for the year to 31 December 2008?

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