James Grant runs a small mail order business. On 1 January 20-7 there was £500 owing for rent in respect of the business premises. During the year the following payments were made for rent, by cheque: LO2

£

4 January 500 3 April 500 5 July 500 8 October 500 On 31 December 20-7 there was £500 owing for rent.

You are required to write up James Grant’s rent account for the year ended 31 December 20-7, clearly showing the amount to be transferred to the profit and loss account and the amount to be carried forward to the next financial year.