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On 30 June 20x4 the following information was available from the books of Allan Grey, a sole trader. Dr cr Trade receivables and Trade payables Purchases and Sales Cash at bank Inventory Carriage on purchases Purchases returns Rent and rates Wages and salaries Insurance covers period from 1 July 20x3 to 31 December 20X4) Discounts Motor vehicle expenses General expenses Bad debts Provision for doubtful debts 8% loan Loan interest Equipment Provision for depreciation of equipment Motor vehicles Provision for depreciation of motor vehicles Capital Drawings $ $ 25 000 14 000 222 000 332 000 8 400 45 500 5 800 4 300 24 600 33 500 3 600 800 1 900 3 600 10 600 600 1 000 10 000 600 25 000 5 000 40 000 20 400 105 000 44 000 493 600 493 600 The following information is also available. (0) The closing inventory as at 30 June 20X4 was valued at $52 000. (il) One sixth of the motor vehicle expenses relate to the running of a motor vehicle privately owned by Allan Grey's wife. No adjustment has yet been made. $200 for bank charges had not been recorded in the books. (iv) Goods costing $500 lost by fire not recorded in the books. This loss was not insured. (v) Wages and salaries of $5 500 were accrued at 30 June 20x4. Equipment is to be depreciated by 20% per annum on cost and motor vehicles to be depreciated using the diminishing (reducing) balance method at 30% per annum. REQUIRED (a) Prepare the income statement of Allan Grey for the year ended 30 June 20x4. (b) Prepare the Balance Sheet of Allan Grey as at 30 June 20X4

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