Calculate adjusted expenses for the Profit and Loss Account.

Step 1: Calculate adjusted expenses for the Profit and Loss Account.

• Wages and salaries: $$\text{Wages and salaries expense} = \text{Trial balance amount} + \text{Accrued amount} \\ = \pounds179,400 + \pounds1,800 = \pounds181,200$$
• Business rates: $$\text{Business rates expense} = \text{Trial balance amount} - \text{Prepaid amount} \\ = \pounds6,100 - \pounds700 = \pounds5,400$$