Question

Following is the Balance Sheet and Receipts and Payments Account of the Memorial Hospital, Sawantwadi, Prepare Income and Expenditure A/c for the year ended on 31.03.2010 and the Balance Sheet as on that date.

Balance Sheet as on 01.04.2009
Liabilities	Amount Rs.	Assets	Amount Rs.
Capital Fund Outstanding Salaries Medical Bill unpaid	10,04,000   22,000 6,000	Cash in Hand Cash at Bank Land and Building Furniture Equipments Outstanding Subscriptions	6,000 34,000 8,00,000 70,000 1,20,000 2,000
	10,32,000		10,32,000

 

Receipts and Payments Account for the year ending 31.03.2010
Dr.					Cr.
Receipts		Amount Rs.	Payments	Amount Rs.
To Balance b/d      Cash in hand      Cash at Bank To Subscriptions        (Includes Rs 2,000 received for previous year) To Sale of furniture       (Book Value Rs 30,000) To Donations (Revenue) To Life Membership Fees		6,000 34,000 1,30,000     20,000   44,000 25,000	By Salaries (Including of the previous year) By Medicines By Equipments purchased By Taxes By General Expenses By Balance c/d     Cash in Hand     Cash at Bank	1,10,000   52,000 20,000 3,000 8,600   15,400 50,000
		2,59,000		2,59,000

Consider the following adjustments:

(1) Outstanding subscriptions Rs 12,000.

(2) Capitalise the amount of membership fees.

(3) Prepaid Taxes Rs 500.

(4) Outstanding Salary Rs 12,000.

(5) Write off depreciation Rs 20,000 from Land and Building and Rs 30,000 from Equipments.

(6) Outstanding Medicine bill as on 1.4.2009 is still due.

Answer 1

In the books of Memorial Hospital, Sawantwadi
Income and Expenditure Account  for the year ending March 31, 2010
Dr.						Cr.
Expenditure			Amount (Rs)	Income		Amount (Rs)
Medicines			52,000	Subscription	1,30,000
General Expenses			8,600	Less: Outstanding in the beginning	2,000
				(2008-09)
Taxes		3,000		Add: Outstanding at the end	12,000	1,40,000
				(2009-10)
Less: Prepaid		500	2,500	Donation		44,000
Depreciation:				Deficit		39,100
Land & Building	20,000
Equipments	30,000		50,000
Salaries paid	1,10,000
Add: Salaries Outstanding	12,000
(2009-10)
Less: Salaries Outstanding	22,000		1,00,000
(2008-09)
Loss on sale of Furniture (30,000 – 20,000)			10,000
			2,23,100			2,23,100

 

Balance Sheet as on March 31, 2010
Liabilities		Amount (Rs)	Assets			Amount (Rs)
Capital Fund	10,04,000		Land & Building		8,00,000
Add: Life Membership Fees	25,000		Less: Depreciation		20,000	7,80,000
Less: Deficit	39,100	9,89,900	Equipment	1,20,000
Medicine Bill Outstanding		6,000	Add: Additions		20,000
Salaries Outstanding		12,000	Less: Depreciation		30,000	1,10,000
			Subscription Outstanding			12,000
			Furniture		70,000
			Less: Sale		30,000	40,000
			Prepaid Taxes			500
			Cash			15,400
			Bank			50,000
		10,07,900				10,07,900