is preparation of receipt and payment a/c is necessary

It is better to prepare  receipt  & payment  and then Income &  expenditure  not profit and loss account . If it is Hospital  its non profit  concern .

but it is not a non profit entity...

dental clinic fall under the category of non profit organisations that are registered under section 8 of companies act..it is better you prepare reciepts and payments account and income & expenditure accpunt also. furthur provide balance sheet under schedule iii format.