From the following information you are required to write up the rates account in the ledger of E Mellon On 1 July 20-2 the rates prepaid were £725. During the year the following amounts were paid for rates, by cheque: LO2

£

8 October 20-2 1,450 for the six months ending 31 March 20-3 5 April 20-3 1,650 for the six months ending 30 September 20-3 Your rates account should clearly show the amount to be transferred to the profit and loss account for the year ended 30 June 20-3 and the amount to be carried forward to the next financial year.