Rachana runs a boutique in the town. She started her business on January 1, 2005 with capital of Rs. 3, 00,000 totally nanced from her own savings. She hired a showroom at a monthly rent of Rs. 8,000 and paid a security deposit of Rs. 50,000; which is refundable at time of the termination of the tenancy without interest. The rent will increase by 10% every year. Rent for a month is paid in the third week of the month. She also purchased furniture of Rs. 1,50,000; the useful life of the furniture is 10 years. She paid insurance premium of Rs- 4,800 on June 1, 2006. The insurance policy covers all type of risk for two years. Initially, Rachana employed two girls for her assistance at showroom but with increase in the volume of the business she employed one more girl since October 1, 2007. All the girls are paid a monthly salary of Rs. 4,000. Salary for a month is paid in the rst week of the next month. She employs professional tailors who are paid on the piece rate basis. Till March 31, 200?, Rachana did not maintain any proper record; except the recodes of receivables and payables. On this date she had to collect Rs. 85, 000 from debtors and had to pay Rs. 65,000 for dress materials and Rs. 8,500 for tailoring charges. She had a bank balance of Rs. 1, 20, 000 and cash in hand of Rs. 6, 850. She provides the following information regarding the stock on this date: Item Cost (Rs) Estimated Net Realizable Value (Rs) Dress Materials 25,000 28,000 Dresses \"5,000 1,20,000 She started keeping proper accounting records since April 1, 200?. During the nancial year 2007-2008, she purchased dress materials of 5,60,000 and paid Rs. 5,50,000 to suppliers. Tailoring charges paid during the year are Rs. 1,82,000 and Rs. 6,?00 are still payables on March 31, 2008 towards this. Dresses of Rs. 10,55,000 were sold. Amount receivable in regards to the dresses sold is Rs. 72,600 on March 31, 2008. Other expenses paid during the year are Rs. 16,000. Rachana has withdrawn Rs. 48,000 'om the Boutique's bank account for personal expenses during the year. Cash in hand on March 31, 2008 is Rs. 5,186. The following information is obtained regarding the closing stock: Item Cost (Rs) Estimated Net Realizable ' Value (Rs) Dress Materials 32,000 3 6,000 Dresses 84,000 80,000 Prepare the Income Statement of Rachana Boutique for nancial year ended on March 31, 2008 and the Balance Sheet on that date