The company’s yearend is 31 December 20X3. Prepare ledger accounts for the following accounts…

The company’s yearend is 31 December 20X3. Prepare ledger accounts for the following accounts…

The company’s yearend is 31 December 20X3. Prepare ledger accounts for the following accounts showing the adjustments that are necessary for the year-end accruals and prepayments and the balances that would appear in the financial statements. a. The opening accrual for heat and light was £100. The company paid £4,500 in the year. The last payment was in December for the period 1 September to the 30 November. This amounted to £1,500. b. The inventory of toiletries on 1 January 20X3 was £250. An additional £580 was purchased in the year. At the year end there were 10 packets of toilet rolls left costing £20 each. c. The rates bill paid last year was £1,200. It was accounted for correctly using the accruals concept. The rates bill paid this year in April amounted to £1,800 (rates bills cover the period 1 April to 31 March in the next year). d. In December 20X2 our tenant paid us £1,200 for the period 1 December to 28 February. During the year we received another £5,000, including £1,500 in December for the three months to 29 February 20X4. e. At the start of the year an agent for a product owed us £400 commission for sales targets we met last year. This year we made the target sales again. They paid us £6,000 but still owe us £900 at the year end. View Solution:
The company s yearend is 31 December 20X3 Prepare ledger accounts

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