question_answer
The following is the receipts and payments account of Ananda Hospital for the year ended on 31st March, 2018. You are required to prepare income and expenditure account for the year ended on 31st March, 2018 and balance sheet as on that date. Receipts and Payments Account Dras on 31st March, 2018Cr Receipts | Amt (Rs.) | Payments | Amt (Rs.) |
To Balance b/d | 23,800 | By Medicines | 92,400 |
To Grant | 56,000 | By Salaries | 75,600 |
To Subscription | 1,34,400 | By Fees to Doctors | 67,200 |
To Donation | 42,000 | By General Expenses | 3,360 |
To Proceeds from Charity Show | 33,600 | By Equipment?s | 42,000 |
To Interest on Investment @ 9% p.a. | 25,200 | By Charity Show Expenses | 11,200 |
| | By Balance c/d | 23,240 |
| 3,15,000 | | 3,15,000 |
Other Information Particulars | 31st Mach, 2017 (Rs.) | 31st March, 2018 (Rs.) |
(i) Subscription-in arrears | 1,400 | 2,800 |
(ii) Subscription-in-advance | 4,200 | 3,500 |
(iii) Stock of Medicines | 30,800 | 35,000 |
(iv) Amount due to Suppliers of Medicines | 19,600 | 32,200 |
(v) Value of Equipment?s | 75,600 | 95,200 |
(vi) Value of Building | 1,90,400 | 1,79,200 |
Answer:
Income and Expenditure Account Drfor the year ending 31st March, 2018Cr Expenditure | | Amt (Rs.) | Income | | Amt (Rs.) |
To Medicines | 92,400 | | By Grant | | |
(+) Opening Stock | 30,800 | | By Subscription | 1,34,400 | |
Closing Creditors | 32,200 | | (+) Outstanding c/y | 2,800 | |
| 1,55,400 | | Prepaid p/y | 4,200 | |
(-) Closing Stock | (35,000) | | | 1,41,400 | |
Opening Creditors | (19,600) | 1,00,800 | (-) Outstanding p/y | (1,400) | |
To Salaries | | 75,600 | Prepaid c/y | (3,500) | 1,36,500 |
To Fees to Doctors | | 67,200 | By Donation | | 42,000 |
To General Expenses | | 3,360 | By Proceeds from Charity Show | | 33,600 |
To Charity Show Expenses | | 11,200 | By Interest on Investment | | 25,200 |
To Depreciation on Equipment?s | | | | | |
Opening Balance | 75,600 | | | | |
(+) Purchases | 42,000 | | | | |
| 1,17,600 | | | | |
(-) Closing Balance | (95,200) | 22,400 | | | |
To Depreciation on Building | | 11,200 | | | |
To Excess of Income over | | | | | |
Expenditure | | 1,540 | | | |
| | 2,93,300 | | | 2,93,300 |
Balance Sheet as at 31st March, 2018 Liabilities | | Amt (Rs.) | Assets | Amt (Rs.) |
Advance Subscription | | 3,500 | Cash | 23,240 |
Suppliers of Medicines | | 32,200 | Outstanding Subscription | 2,800 |
Capital Fund | 5,78,200 | | Medicines | 35,000 |
(+) Surplus | 1,540 | 5,79,740 | Equipment | 95,200 |
| | | Building | 1,79,200 |
| | | Investment | 2,80,000 |
| | 6,15,440 | | 6,15,440 |
Working Note Balance Sheet as at 31st March, 2017 Liabilities | Amt (Rs.) | Assets | Amt (Rs.) |
Advance Subscription | 4,200 | Cash | 23,800 |
Suppliers of Medicines | 19,600 | Outstanding Subscription | 1,400 |
Capital Fund (Balancing figure) | 5,78,200 | Medicines | 30,800 |
| | Equipment | 75,600 |
| | Building | 1,90,400 |
| | \[Investment\,\left( \frac{25,200}{9%} \right)\] | 2,80,000 |
| 6,02,000 | | 6,02,000 |