Dr. Renu is a practicing surgeon. The Receipts and Payments Account for the year 2008 is as follows:

Receipts

Its

Payments

Its

Balance b/d

20,000

Salaries to Nurses

30,000

Fees

30,00,000

Rent

10,000

Miscellaneous Receipts

5,000

Journals

4,000

Sale of Old Equipment

20,000

Books for Library

16,000

(cost of Rs 30,000)

Purchases of Instruments

40,000

Stationery

400

Conveyance

5,114.M

Purchases of Medicines

50,000

Furniture

5,000

Drawings

1,50,000

Cash in Hand

36,600

3,45,000

3,45,000

Her position stood on Jan 1, 2008 as:

Equipment Rs 1,50,000; medicines Rs 20,000; fees outstanding Rs 4,000; books Rs 20,000.

Fees still outstanding Rs 10,000, salaries to nurses still payable Rs 4,000; stock of medicines Rs 4,000.

Depreciate Equipment by 10% and Books @ 20.

You are required to prepare Receipts and Expenditure Account of Dr Renu for the year ending Dec 31, 2008 and a Balance Sheet on that date.