Candy provided the following information at the end of her financial year on 30 September 20–3:
                                                                            $    
Capital at 1 October 20–2 ...................    198,000
Fees received from clients  ...............        82,300
Staff wages  ....................................            49,600
Rent and rates  ....................................        7,420
Insurance  ....................................                 3,830
Commissions received  ......................         4,810
Light and heat  ...............................              2,180
Office expenses  ....................................      1,730
Drawings  ....................................               18,750

a. State whether Candy’s business is a trading business or a service business. Give a reason for your answer.

b. Prepare Candy’s income statement for the year ended 30 September 20–3.

c. Prepare Candy’s capital account on 30 September 20–3. Balance the account and bring down the balance on 1 October 20–3.