Above is given trial balance for the 30 March 2007

During 31 March 2007, the business made the following transactions.

(a) Bought materials for $1,000, half for cash and half on credit

(b) Made $1,040 sales, $800 of which was for credit

(c) Paid wages to shop assistants of $260 in cash

(d) Sales were 45,000$, 50% of them in cash

(e) trade payables decreased by 30%

(f) bought fixtures and furniture in credit amounting 23,120$

Requirement:

Prepare income statement for the year ended 31 march 2007

Prepare balance sheet for the year ended 31 march 2007

Accounts Balance Bank loan Cash at bank Capital Local business taxes Trade accounts payable Purchases Sales Sundry payables Trade accounts receivable Bank loan interest Other expenses Vehicles 12,000 11,700 13,000 1,880 11,200 12,400 14,600 1,620 12,000 1,400 11,020 2,020