This question was answered, but the balance sheet does not balance.

The following extracts were made from the books and records of Sandy Dandy for the year ended 31 December 2005: 1. Cash book summary Receipt Payments RR Opening balance 13 600 Cash sales 36 280 Interest 890 470 Additional capital 25 000 introduced Rental of premises 2 220 Trade creditors(all for 48 875 purchases) Telephone and postage 2 160 Trade debtors (all in 77 470 respect of sales) Office furniture 2 900 (purchased 1 July 2005) Carriage inwards 4980 Drawings 16 675 Printing and stationery 450 Salaries (office) 14 800 Insurance 3 840 Closing balances 28 670 139 640 139 640 2. Extracts from ledger balances Opening Closing balances balances 01/01/2005 31/12/2005 9 680 8 190 1 800 9 800 10 930 9770 Trade debtors Trade creditors Capital account-Sandy Dandy Stock Accruals Telephone Rent Carriage inwards 7245 110 220 190 490 2 220 Prepayment Rent 180 Insurance 1 730 Office furnisher and equipment 6230 Office furnisher and equipment Accumulated depreciation 3430 3. Additional information Office furnisher 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. Required (a) Income statement for the year ended 31 December 2005. (b) Balance sheet at 31 December 2005. NB: Comparitive figures are not required