M/s Sagar and Boond are a firm of solicitors whose partners Anand and Ashok share profits in equal shares after charging a management fee of 5% there of to Anand. For the year ended on Mar 31, 2008, the books maintained by the firm reveal the following particulars.

Capital

33,000

Office Rent

12,000

Drawings Anand

20,000

Office Expenses

3400

Ashok

18,000

Furniture and Life Books

24400

Life Insurance Premium

Clients Disbursements

2400

Paid: Anand

6,000

Amount owing by Clients for bills

17,200

Ashok

12,000

of cost rendered

Salaries to Staff and Juniors

46,000

Profit Costs

1,42,000

Amounts received from clients on Accounts

32,000

Fixed Deposits with Bank

15,000

of pending matter

Bank Amounts: Clients

31,800

Salary debts owing by firm

3,400

Office

6400

Reserve against bills of costs not collected with work in progress as on Apr 1,2007

5,000

Work in progress on Mar 31,2008

8,200

The following additional information is also available.

  1. Capital accounts of partners, at the beginning of the year, were of equal amounts.
  2. Included in the bills of costs sent to clients are sundry disbursements like postage, telephone charges, etc. debited in the books of office expenses account. At the end of the year, items on the debit side of clients Disbursements Account amounting to Rs 3,200 had not been charged to clients in bills of costs. If Rs 200 was received and credited to their accounts in the year.

Required: Prepare Receipts and Expenditure Account of the firm for the year ended on Mar 31, 2008 and a Balance Sheet on that date.