B & B Sellers had the following balance sheet on 30 June 2006. ASSETS Fixed property Equipment at cost R15000 Less accumulated depreciation 6000 _ Investments Stock at cost Debtors Bills receivable Expenses prepaid (insurance) Income accrued (interest) Bank R32000 [9000],[12000],[39500],[8000],[2000],[800],[600],[7000],[110900] The owners did not keep proper double-entry records, but it is ascertained that the following events took place during the year ended 30 June 2007: Cash received:

Required Draw up an income statement for the year and a balance sheet on 30 June 2007 conforming to the requirements of generally accepted accounting practice. Bear in mind that J Barnes and C Barnes share profits 3:2.