Trial balance of Mahendra Traders as at 28 feb 2007
Capital R320 000
Drawings 40 000
Land and buildings 440 000
Motor vehicles 360 000
Accumulated depreciation on vehicles 108 000
Furniture & Equipment 60 000
Accumulated depreciation on furniture and Equipment 18 000
Debtors control 24 000
Provision for bad debts 1 200
Creditors control 46 800
Inventories 60 000
Bank 46 000
Prepaid expenses 1 200
Accrued income 800
Loan from citi bank 400 000
Accrued expenses 24 000
Revenue 800 000
Cost of sales 240 000
Discount received 1 200
Commission income 1 800
Rent expense 96 000
Salaries and wages 80 000
Water and electricity 36 000
Telephone 34 000
Depreciation (18 000 + 3 000) 42 000
Interest on loan 64 000
Consumable stores 8 000
Repairs 32 000
Municipal rates 55 400
Bad debts 1 600

you just need to grasp the concept in making Income Statement and Balance sheet. In Income statement you need to figure out the net income of the company, so you add all the revenues find to total for that and then from it less the total expenses will give you the Net Income. You need this net income to find out the Owner's Equity which comes from Owner's Equity Statement. In OES you you add the net income to the owner's equity and less(subtract) the owners withdrawals from it. This Owners equity is used in Balance sheet. Balance sheet as the name suggests Balances the Accounting Equation(Assets=Liabilities + Equity). Here you add all the assets on one side. Add all the liabilities and make addition to it with the output of equity statement. The totals should be equal

You need to be able to classify all of these accounts. Meaning your first step really is to sit down and put them in order, with assets first, etc. (They're already sorta organized, but not quite there.) I would hope your text has examples of the statements, but here are some different examples for you:

Principles of Accounting Chapter 4 (http://www.principlesofaccounting.com/chapter%204.htm#PREPARING%20FINANCIAL%20STATEMENTS )
Multiple-Step Income Statement | AccountingCoach.com (http://www.accountingcoach.com/online-accounting-course/04Xpg04.html#income-statement-multiple-step)
Sample Balance Sheet | AccountingCoach.com (http://www.accountingcoach.com/online-accounting-course/05Xpg04.html#balance-sheet-sample)