Despite her limited knowledge in Accounting Mama Safi has been fairly successful in business. She is

Despite her limited knowledge in Accounting Mama Safi has been fairly successful in business. She is able to provide you with the following pieces of information for the year ended 31^st Dec 2012

With the pieces of information given you are able to reconstruct the following summary of her cash and bank transactions.

Cash summary

Receipts			Payments
Opening balance	490		Purchases	3400
Sales	53600		Wages	1020
Checks cashed	2600		other expenses	2260
	Drawings		8200
Bank summary			Paid into bank	39950
Receipts			Payments
Opening balances	9200		Purchases	29500
Sales	39950		wages	3710
Checks form customers	17330		other expenses	7700
			Drawings	2600
Other available information			Furniture	12500
Year	Jan 1st		Dec 31st
Stock	29500		32710
Debtors	3250		5010
Creditors	7360		10140
Wages due	740		830

Mama Safi knows for sure Mama Mboga a customer owing 270 will definitely not pay and she believes that about 4% of the remaining debtors may not pay. The furniture is to be depreciated at the rate of 20% per annum straight line, assuming no residual value.

Required

i) Mama Safi Income Statement for the year 2012

ii) Balance Sheet on 31^st Dec 2012 (20 mrks)