James Conway commenced trading on 1 January 20-7, on which date he acquired premises at an annual rental of £2,700. On 1 May 20-7 he sub-let a section of the premises at an annual rental of £900.

During the year ended 31 December 20-7 the following payments had been made in respect of rent, by cheque: LO2

£

30 March 675 29 June 675 28 September 675 and the following amounts had been received by cheque, from the sub¬ tenant:

£

3 May 225 1 August 225 4 November 225 You are required to write up separate accounts for rent payable and rent received for the financial year ending 31 December 20-7. Balance the accounts, and show the relevant transfers to the profit and loss account.