Oriel Ltd, whose financial year runs fron 1 June to the following 31 May, maintains a combined Rent and Rates Accoufit in its ledger.

Rent is fixed on a calendar year basis and is payable quarterly in advance. Rent was £2,400 for the year ended 31 December 19X8 and is £3,000 for the year ending 31 December 19X9.

the following payments of rent by cheque:

Date Amount Details 19X8 £

3 Jan. 600 Quarter 1 April 600 Quarter 1 July 600 Quarter 1 Oct.

19X9 600 Quarter 3 Jan. 750 Quarter 1 April 750 Quarter 31 March 19X8 30 June 19X8 30 September 19X8 31 December 19X8 31 March 19X9 30 June 19X9 Rates are assessed annually for the year from 1 April to the following 31 March and are payable in one lump sum by the 30 September. The rates assessment was £2,040 for the year ended 31 March 19X9 and £2,280 for the year ending 31 March 19X0.

Oriel Ltd paid the rates for the year ended 31 March 19X9 by cheque on 30 September 19X8 and intends to pay the rates for the year ended 31 March 19X0 on 30 September 19X9.

Required:

(a) Prepare the Rent and Rates Account for the year ended 31 May 19X9 only as it would appear in the ledger of Oriel Ltd.

(b) Explain with particular reference to your answer to

(a) the meaning of the term

‘matching’.

(Association of Accounting Technicians)