A business earns income by renting out properties. During the year ended 31 December 2010 it received £38,400 as rent. This amount includes £5,400 received as advance for 2011. During 2011 it received £34,500 as rent and a third of this amount relates to 2010. The financial statements for the year ended 31 December 2010 should report:

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Rental income a £38,400 b £49,900 c£44,500 d £49,900 Rent in arrears None £11,500 £11,500 £11,500