Following Receipt andPayment Account was prepared from the cash book of Delhi CharitableTrust for the year ending December 31, 2007 Receipt and Payment Account for the year ending December 31, 2007 Receipts Amount Rs Payments Amount Rs Balance b/d Charity 11,500 Cash in Hand 11,500 Rent and taxes 3,200 Cash at Bank 12,600 Salary 6,000 Donation 9,000 Printing 600 Subscription 42,800 Postage 300 Legacies 18,000 Advertisements 4,500 Interest on investment 4,500 Insurances 2,000 Sale of old newspapers 200 Furniture 21,600 Investment 23,000 Balance c/d: Cash in Hand 9,900 Cash at Bank 16,000 98,600 98,600 Prepare Income andexpenditure account for the year ended December 31, 2006, and abalance sheet as on that date after the following adjustments: (a) It was decided to treat one-third of the amount received on account of donation as income. (b) Insurance premium was paid in advance for three months. (c) Interest on investment Rs1,100 accrued was not received. (d) Rent Rs600: salary Rs900 and advertisement expenses Rs1,000 outstanding as on December 31, 2007.