M + BALANCE SHEET Exercise 2 Test I: Preparation of Income Statement and Balance Sheet The following balances are taken from the books of George Anderson at the end of his first year trading on 31 December 2014. Debit Credit $ $ Sales Purchases 40000 18500 Wages and salaries 5100 Repairs and maintenance 1300 Heating and lighting 900 General expenses 1200 Insurance 800 Cash at bank Cash in hand Trade receivables 2200 1300 4100 Trade payables 3400 Premises 30000 Fixtures and fittings 10000 Motor vehicle 8000 Capital at 1 January 2014 52000 Drawings 12000 95400 95400