Jasmine is a retailer of fashion goods. The following balances were extracted from her books on 30 September 2011. $ Revenue (sales) 210000 Purchases 113500 Goods returned by customers 8120 Goods returned to suppliers 3400 Inventory at 1 October 2010 9430 Carriage 1700 Insurance 5600 Light and heat 6300 Staff wages 27000 Advertising 10600 General expenses 15850 Discount received 1750 Building costs 20100 Land and buildings at cost 100000 Fixtures and fittings at cost 18000 Computer equipment at cost 12000 Provisions for depreciation: Fixtures and fittings 7200 Computer equipment 3600 Disposal account 200 Cr 7% Bank loan repayable 30 March 2014 20000 Bank overdraft 18500 Trade receivables 8200 Trade payables 26750 Provision for doubtful debts 500 Drawings 15500 Capital at 1 October 2010 80000 Additional information: 1 Inventory at 30 September 2011 was valued at $11780. 2 The cost of carriage from suppliers was $500, the remainder of the cost related to the delivery of goods to customers. 3 At 30 September 2011: Heating expenses, $375, were accrued. Insurance, $1120, is prepaid. 4 The 7% bank loan was received on 1 April 2011. Interest is payable on each anniversary of the loan. 5 Buildings costs consists of $16000 to build an extension to the building and $4100 to repair the heating system. 6 Depreciation is charged on: Fixtures and fittings at the rate of 20% per annum on cost using the straight line method. Computer equipment at the rate of 30% per annum using the diminishing (reducing) balance method. 7 A provision for doubtful debts is to be maintained at 5% of trade receivables.

1. (a)Prepare the income statement for Jasmine for the year ended 30 September 2011.[24]
2. (b)Prepare the balance sheet of Jasmine at 30 September 2011.[16]