Expenses Ledger Account - Where do the figures come from?

charlotte_rahmancharlotte_rahman Posts: 5Registered
Hi, I am struggling with the following question and would really appreciate it if someone could explain to me where the SPL figure and the Balance c/d figure come from. (It is question 12 of ACPR Revision Kit)

You are given the following information:
Accrual for administration expenses £790

The bank summary for the year shows payments for administration expenses of £7,190. Included in this figure is £2,700 for the quarter ended 31 May20x1.

Prepare the administration expense account for the year ended 31 March 20x1 and close it off by showing the transfer to the statement of profit or loss.

The answer is:

Administration expenses account

(Debit side)
Bank 7190

(Credit side)
Balance b/d 790
SPL 4600
Balance c/d 1800

If this question has been answered before please post the link for me.

Thanks !

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