Anna has a trading business. Her Trial Balance as at 31 December 2020 was as follows:

TRIAL BALANCE AS AT 31 DECEMBER 2021

	Debit	Credit
Equity a/c 1/1/2020		30,000
Carriage outward costs a/c	9,000
Motor Van A Cost Motor Van A Accumulated depreciation	10,000	5,000
Motor Van B Cost	20,000
Electricity a/c	14,000
Sales a/c		305,000
Rent a/c	15,000
Sales returns a/c	15,000
Cash at bank and in hand a/c	8,000
Insurance a/c	8,000
Carriage inward costs a/c	7,000
Purchases returns a/c		6,000
Purchases a/c	220,000
Trade receivables/payables	69,000	54,000
Inventories a/c 1/1/2020	60,000
Salaries a/c	21,000
Bank Loan a/c		80,000
Interest on bank loan a/c	4,000
	480,000	480,000

NOTES:

1. Inventories as at 31/12/2020 were 72,000.
2. Interest on bank loan is 10% on the year-end balance and is paid in two equal instalments.
3. Rent is 1,000/month. At the beginning of the year there was no rent accrued or prepaid.
4. Insurance is 800/month. At the beginning of the year there was no insurance accrued or prepaid.
5. A bonus to employees of 3,000 regarding their performance in the year ended 31 December 2020 was paid in January 2021. This is the first time that such a bonus was paid.
6. Motor vans are depreciated using the Reducing Balance method at 30%. Motor Van B was bought on the 1 October 2020.

REQUIRED

1. Prepare the Income Statement for the year ended 31 December 2020.

ii. Prepare the Balance Sheet as at 31 December 2020.