The following information refers to the rates account in the ledger of K. Parker. On 1 January 20-7 the rates prepaid were £525. During the year the following payments were made for rates, by cheque: LO2 30 April £1,150 for the six months ending 30 September 20-7 5 October £1,150 for the six months ending 31 March 20-8 You are required to prepare K. Parker’s rates account for the year ending 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.