# Oriel Ltd, whose financial year runs from 1 June to the following 31 May, maintains a combined rent and rates

## Question:

Oriel Ltd, whose financial year runs from 1 June to the following 31 May, maintains a combined rent and rates account in its ledger.

Rent is fixed on a calendar year basis and is payable quarterly in advance. Rent was Â£2,400 for the year ended 31 December 20X2 and is Â£3,000 for the year ending 31 December 20X3.

Rates are assessed annually for the year from 1 April to the following 31 March and are payable in one lump sum by 30 September. The rates assessment was Â£2,040 for the year ended 31 March 20X3 and Â£2,280 for the year ending 31 March 20X4.
Oriel Ltd paid the rates for the year ended 31 March 20X3 by cheque on 30 September 20X2 and intends to pay the rates for the year ended 31 March 20X4 on 30 September 20X3.
Required
a. Prepare the rent and rates account for the year ended 31 May 20X3 only as it would appear in the ledger of Oriel Ltd.
b. Explain with particular reference to your answer to (a) the meaning of the term 'matching'.

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