On 1 January 2011 the following balances, among others, stood in the books of M. Prior, a sole proprietor:

(a) Business rates, £400 (Dr);

(b) Packing materials, £800 (Dr). During the year ended 31 December 2011 the information related to these two accounts is as follows: (i) Business rates of £3,600 were paid to cover the period 1 April 2011 to 31 March 2012; (ii) £6,000 was paid for packing materials bought; (iii) £700 was owing on 31 December 2011 in respect of packing materials bought on credit; (iv) Old materials amounting to £200 were sold as scrap for cash; (v) Closing inventory of packing materials was valued at £1,300. You are required to write up the two accounts showing the appropriate amounts transferred to the income statement at 31 December 2011, the end of the financial year of the trader. Note: Individual accounts are not opened for accounts payable for packing materials bought on credit.