The following is a list of balances from the ledger of Raj Kumar after trading for the year ended 30 June 2018

Land and buildings $783,000

Motor vehicles 45,000

Plant & Machinery 194,000

Bank overdraft 64,400

Office Furniture & Equipment 24,600

Accounts Receivable 70,000

Accumulated Depreciation - Plant & Machinery 10,000

Accumulated Depreciation - Office furniture and eq 1,800

Accumulated Depreciation - Motor vehicle 2,000

Sales 1,110,800

Inventory 30 June 2018 36,000

Depreciation 2,800

Cost of goods sold 921,000

Mortgage 168,000

Bad Debts recovered 1,000

Salaries - Office Staff 30,000

Accounts Payable 40,000

GST Payable 29,600

Capital 768,420

Insurance 1,400

Advertising 5,000

Office Expenses 11,400

Long Service Leave Expense 800

Bad Debts 1,420

Drawings 18,000

Salaries - Sales Staff 54,000

Accrued Income 800

Prepaid expenses 1,500

Provision for long service leave 2,500

Rent Income 1,200

Note the perpetual inventory system is used

required

a) prepare classified income statement for the year end 30 June 2018

b) Prepare classified Balance sheet as at 30 June 2018