Khan presented the following trial balance at the end of financial year 2006.

Cash 22500

Bank 31000

Stock 65020

Discount 920 850

Rent 9500

Fixtures and furniture 14830

Advertisement expenses 5370

Heat and light 1160

Wages 600

Insurance 260

Debtors and Creditors 25600 29520

Capital 125000

Drawings 8924

Loan 80000

General expenses 15800

Fuel expenses 25610

Salaries 42000

Purchases and Sales 56000 89724

Total amount 325094 325094

Other data:

Stock was valued at Rs.98230 on December 31, 2006.

Wages owing Rs.8250.

Depreciation charges on fixture and fitting at 10% on cost.

Khan had taken goods of Rs.10000 for his personal use. This amount has not been recorded in the accounts.

Insurance expired Rs.100.

Required: Prepare Income Statement and Balance Sheet.