The following information is extracted from the Hafiz & Co. on 31-12-2020: Rs. Rs. Land & Building 10,000 Account Payable 2,800 Office Equipment 6,000 Loan from ICP 7,000 Inventory 3,000 Bills Payable 1,000 Drawings 650 Return Outward 1,100 Carriage in 250 Sales 25,000 Cash in Hand 335 Commission Received 400 Loan to Ahmed 4,500 Capital 12,000 Bills receivables 2,450 Salaries 1,740 Account Receivables 3,200 Rent & Taxes 640 Wages 360 Postage 200 Delivery Charges 300 Sales Salaries 1,200 Interest on Loan 275 Purchases 14,200 Total 49,300 Total 49,300 Closing inventory was valued at cost Rs, 5,500, market value Rs. 6,200; outstanding wages was Rs. 200 and salaries Rs. 400; rent prepaid Rs. 150; depreciation on fixed assets @ 5% p.a.; commission unearned Rs. 150; and create an allowance of account receivable at 5% for uncollectable. Required: Prepare Income Statement and balance sheet as of 31st December 2020