Daniel and Associates Chartered Accountants is a successful mid-tier accounting firm with a large range of clients across Australia. During the year 2019, Daniel and Associates gained a new client, People Care Holdings Group (PCHG), which owns 100 per cent of the following entities:

Aryan Taylor Hospital, a private hospital group

Marina Nursing Home Pty Ltd, a private nursing home

General Cancer Care Limited, a private oncology clinic that specialises in the treatment of cancer.

Financial year end for all PCHG entities is 30 June.

The audit partner for the audit of PCHG, Karina Gupta, has discovered that two months before the end of financial year, one of the senior nursing officers at Marina Nursing Home was dismissed. Her employment was terminated after it was discovered she had worked in collusion with a number of patients to reduce their fees. The nurse would then take secret payments from the patients.

The nursing officer had access to the patient database. While she was only supposed to update room-located changes for patients, she was able to reduce the patient period of stay and the value of other services provided. The fraud was detected by a fellow employee who overheard the nurse discussing the 'scam' with a patient. The employee reported the matter to the Marina Nursing Home's general manager.

Required:

Which accounts -balance sheet and income statement- are potentially affected by the fraud in Marina Nursing Home?