Prepare bookkeeping records for the information in question B10.1. Data From question B10.1: White Ltd commenced trading

Question:

Prepare bookkeeping records for the information in question B10.1.


Data From question B10.1:

White Ltd commenced trading on 1 July Year 3 and draws up its accounts for the year ended 30 June Year 4. During its first year of trading the company pays total telephone expenses of £3,500. The three-month bill paid in May Year 4 includes calls of £800 for the quarter up to 30 April Year 4 and advance rental of £660 to 31 July Year 4. The bill received in August Year 4 includes calls of £900 for the quarter up to 31 July Year 4 and advance rental of £660 to 31 October Year 4.


Required:

Show calculations of the telephone expense to be recorded in the profit and loss account of White Ltd for its first year of trading.

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