Receipts R Payments R 13 600 36 280 890 25 000 470 2 220 48 875 2 160 Opening balance Cash sales Interest Additional capital introduced Rental of premises Trade creditors (all for purchases) Telephone and postage Trade debtors (all in respect of sales) Office furniture (purchased 1 July 2005) Carriage inwards Drawings Printing and stationery Salaries (Office) Insurance 77 470 2 900 4 980 16 675 450 14 800 3 840 28 670 139 640 Closing balances 139 640 2. Extracts from ledger balances Opening balances (01/01/2005) R 9 680 8 190 1 800 9 800 Closing balances (31/12/2005) R 10 930 9770 7 245 110 220 190 Trade debtors Trade creditors Capital account - Sandy Dandy Stock Accruals Telephone Rent Carriage inwards Prepayment Rent Insurance Office furniture and equipment Office furniture and equipment Accumulated depreciation 490 180 1 730 6 230 2 220 3 430 3. Additional information . 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. . . Financial quired Income statement for the year ended 31 December 2005. Balance sheet at 31 December 2005. Comparative figures are NOT required. B estion 2 business