The Receipts and Payments Account of Harimohan charitable institution is given Receipts and Payments Account for the year ending March 31, 2007 ReceiptsAmt. (Rs) Payment Amt (Rs)Balance b/d Furniture3,000Cash at Bank22,000Investments55,000Cash in Hand8,800Advance for Building20,000Donations32,000Charities60,000Subscriptions50,200Salaries10,400Endowment Fund60,000Rent and Taxes4,000Legacies24,000Printing1,000Interest on Investment3,8000Postage300Interset on Deposits800Advertisements1,100Sale of Old Newspapers500Insurance4,800 Balance c/d Cash at Bank32,000 Cash in Hand10,500 ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯2,02,100–––––––––– ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯2,02,100–––––––––– Prepare the Income and Expenditure Account for the year ended on March 31, 2007 after considering the following (i) It was decided to treat Fifty percent of the amount received on account of Legacies and Donations as income. (ii) Liabilities to be provided for are Rent Rs 800; Salaries Rs 1,200; Advertisement Rs 200. (iii) Rs 2,000 due for interest on investment was not actually received.