Karl Ward imports and sells furniture. The following balances were extracted from his books on $30$ September $2005.$

$\backslash$table$[[,$$$,137900],[$Sales$,6900,],[$Stock at $1$ October $2004,41200,],[$Purchases$,9400,],[$Carriage inwards,$1300,],[$Carriage outwards,$34700,],[$Wages and salaries,$1800,],[$Insurance$,10800,],[$Rent and rates paid,$4200,],[$Motor vehicle expenses,$22850,800],[$General expenses,,$700],[$Discounts received,$32000,],[$Bank overdraft,,$16000],[$Motor vehicles at cost$,,3140],[$Provision for depreciation of$,,],[$motor vehicles at $1$ October $2004,17690,24300],[$Trade creditors,$182840,182840],[$Drawings$,,]]$

Additional information

Stock at $30$ September $2005$ was valued at $$7500.$

During the year Karl Ward took goods costing $$4300$ for his own use. No entries have been made in the books.

Depreciation is to be charged on the motor vehicles using the diminishing $($reducing$)$ balance method at $50\%$ per annum.

Wages and salaries, $$6800,$ were owing at $30$ September $2005.$

The amount for insurance represents insurance cover for the $18$ month period from $1$ October $2004$ to $31$ March $2006.$

REQUIRED

a$)$ Prepare the Income Statement for the year ended $30$ September $2005$

b$)$ Prepare a balance sheet as $30$ September $2005,$ clearly showing the working capital.