The following list of balances for the year ended $30$ June $2007$ was

taken from the records of Bambi Ltd:

The following additional information is also available:

The authorised share capital comprises $50000$ ordinary shares of

R$1$ each and $5000010\%$ preference shares of R$1$ each. All the

ordinary shares and $10000$ of the preference shares were issued.

Interest on the long$-$term loan at $10\%$ per annum is payable

monthly in arrears. The capital portion of the loan is repayable in

annual instalments of R$2500$ commencing on $30$ June $2008.$ The

loan is secured by a mortgage bond over land and buildings$\mathrm{.}3.$ Land and buildings consist of freehold land with a factory building

erected on it$,$ acquired on $16$ July $2005.$ The land and buildings

are situated at $16$ Dermar Avenue, Salt Lake City. The land and

buildings have been mortgaged as per note $2$ above.

$4$ Depreciation rates are as follows:

$$ Land and buildings $$ not depreciated.

$$ Plant and equipment $10\%$ per annum on cost$.$

$$ Motor vehicles $20\%$ per annum on cost$.$

$5$ The investment consists of $5000$ ordinary shares in Vesper Ltd

with a market value of R$27000.$

$6$ The inventory on hand at $30$ June $2007$ consists of merchandise

valued at R$6400.$ The inventory is valued at the lower of cost or

net realisable value on the first$-$in$-$first$-$out basis.

$7$ Provision should be made for a dividend of $10\%$ on ordinary

shares and for SA normal tax of R$10000.$

$8$ An amount of R$5000$ should be transferred to the general reserve.

$9$ Administrative expenses include the following:

$$ Audit fees $2000$

$$ Director's fees $4000$

$$ Interest on loan $2000$

You are required to:

Draw up the income statement for internal use