This question has been answered but the balance sheet does not balance.

The following list of Balances was extracted from the books of BG Trading Limited at 30 June 2006 after the closing entries had been passed.

Trade creditors R137 883. Stock R699 715. Provision for income tax (balance due) R2004. Provision for bad debts R20 997. 16 % mortgage debentures R400 000. Land and buildings at cost R600 000. Debentures interest accrued R16 000. Goodwill at cost R300 000. General reserve R198 000. Furniture at cost less depreciation R100 000. Debtors R396 400. Ordinary share capital R1 500 000. Retained income R163 715.

Additional information: 1. The cash book balance had been omitted

2. A dividend of 10% has been declared but no entries have yet been made.

3. The authorized capital of the company is R100 000 ordinary shares of R2 each. The directors have unrestricted power to issue the unissued shares as they deem fit before 31 March 2007

4. Stock at 30 June 2006 has been valued at the lower of cost or net realizable value. The basis was consistent with that used in previous years.

5. The furniture on hand at 30 June 2006 was purchased on 1 July 2004. Depreciation is calculated at 10% per annum according to the fixed instalment method.

6. The debentures were issued in units of R100 and are redeemable at the premium of 5% on 30 June 2006.

7. Land and buildings consist of office and shop premises on site number 178, Evertal, purchased on 3 August 1996 for R600 000. 8. Debtors include an amount of R16 400 lent to a director. The loan was made on 17 June 2006 and no repayments have yet been made. The loan was for the purchase of a car to be used mainly for the company's business, and was properly authorized

Required: Prepare the balance sheet confirming to generally accepted accounting practice and the provisions of the Companies Act. Ignore comparative figures and the funds statement