A business has an accounting year end of 31 March 20X7. Electricity expenses of P 470 were accrued on 31 March 20X6. In the cash book for the year ended 31 March 20X7, payments of P 8,950 were paid for electricity expenses. On 7 April 20X7 a further electricity bill is received for January to March 20X7 totaling P 180. This bill is then paid on 25 April 20X7.

Required

Update the electricity expenses account.

Show clearly:

• The reversal of the opening accrued expenses
• The cash book figure
• The year-end adjustment
• The balance to be carried down or transferred to the statement of profit or loss, as appropriate.