Question 1 The following extracts were made from the books and records of Sandy Dandy for the year ended 31 December 2022: 1. Cash book summary Opening balance Cash sales Interest Additional capital introduced Rental of premises E Trade creditors (all for purchases) Receipts R Payments 36 280 890 25 000 R 13 600 470 2 220 48 875 Telephone and postage E 2 160 Trade debtors (all in respect of sales)\ 77 470 Office furniture (purchased 1 July 2005) Carriage inwards 2 900 4 980 E Drawings Printing and stationery Salaries (Office) Insurance E Closing balances 16 675 450 14 800 3 840 28 670 139 640 139 640 2. Extracts from ledger balances Opening balances (01/01/2022) Closing balances (31/12/2022) R R Trade debtors 9 680 10 930 Trade creditors 8 190 9 770 Capital account - Sandy Dandy 1 800 Stock 9 800 7245 Accruals Telephone 110 220 Rent 190 Carriage inwards Prepayment Rent Insurance Office furniture and equipment Office furniture and equipment Accumulated depreciation 490 180 1 730 6230 2 220 3 430 3. Additional information 6230-3430- Office furniture and equipment is to be depreciated at 10% p.a. (reducing balance method). Additions during the year are depreciated at half the annual rate. Debts totalling R1 725 are considered to be bad and are to be written off. Sandy agreed to provide a bonus of R770 for the bookkeeper.