Following is theReceipt and Payment account of Rohatgi Trust : Receipt and Payment Account for the year ending December 31, 2006 Receipts Amount Rs Payments Amount Rs Cash in hand 14,000 Rent 6,000 Cash at Bank 60,000 Salary 12,000 Subscriptions: 2005 2006 2007 5,000 83,000 3,000 91,000 Postage Electricity charges Purchase of furniture Books 300 6,000 20,000 3,000 Sale of Investment 90,000 Defence Bonds 1,50,000 Interest on investment 2,000 Help to needy students 22,000 Sale of old furniture (book value Rs 3,000) 3,200 Cash in hand Cash at bank 10,900 30,000 2,60,200 2,60,200 Prepare Income andexpenditure account for the year ended December 31, 2006, and abalance sheet as on that date after the following adjustments:Subscription for 2006, still owing were Rs 7,000. Interest due ondefencebonds was Rs7,000, Rentstill owing was Rs 1,000. The Book value of investment sold was Rs80,000, Rs 30,000 of the investment were still in hand. Subscriptionreceived in 2006 included Rs 400 from a life member. The totalfurniture on January 1, 2006 was worth Rs 12,000. Salary paid for theyear 2007 is Rs 2,000.