The annual charge for business rates is £2,000. However, in the year ending 31 December 2015 a business had paid £314 in advance for 2016. By 31 December 2016 the business had paid £275 in advance for 2017. The account for business rates would appear as follows:

Business rates

2016

£

2016

£

1 Jan

Balance b/d

314

31 Dec

Income statement

2,000

31 Dec

Bank

1,961

31 Dec

Balance c/d

275

2,275

2,275

2017

2017

1 Jan

Balance b/d

275