Question

(Accounts of a Charitable Hospital)
Following information has been provided by “Janseva Charitable Hospital”, Latur. You are required to prepare Income and Expenditure Account for the year ending on 31/03/2013 and Balance Sheet as on that date.
                            Balance Sheet as on 01/04/2012

Liabilities	Amount (Rs.)	Assets	Amount (Rs.)
Capital Fund	10,37,000	Building	10,00,000
Bank Loan	600,000	Ambulance	350,000
Outstanding bill for Drugs	45,000	Stock of Drugs	35,000
		Hospital Equipments	295,000
		Cash in Hand	2,000
	16,82,000		16,82,000

Receipts and Payments Account for the year ending 31.03.2013
Dr.                                                                                                     Cr.

Receipts	Amount (Rs.)	Payments	Amount (Rs.)
To Balance b/d	2,000	By Purchases of Drugs	190,000
To subscription	210,000	By Salary of staff	85,000
To Life Membership Fees	27,500	By Honararium to Doctors	385,000
To Hospital Receipts (Revenue)	520,900	By Repairs and Maintenance	17,900
		By Furniture	40,000
		By General Expenses	12,600
		By Balance c/d	29,900
	760,400		760,400

Adjustments:
1) On 31/03/2013 stock of Drugs was valued Rs 20,000.
2) Depreciate Building @ 5% p.a. and Ambulance by Rs 20,000
3) Life Membership Fees are to be capitalized.

Answer 1

Janseva Charitable Hospital, Latur

Income and Expenditure Account

for the year ending March 31, 2013

Dr.                                                                                                        Cr.

Expenditure	Amount (Rs)	Amount (Rs)	Income	Amount (Rs)
Drugs Consumed during the year Stock as on Apr.01,2012		205,000	Subscription	210,000
	35,000		Hospital Receipts	520,900
Add: Purchases	190,000		Deficit (Excess of Expenditure over Income)	44,600
Less: Stock as on Mar.31,2013	20,000
Repairs and Maintenance		17,900
Honorarium to Doctors		385,000
General Expenses		12,600
Depreciation: Building Ambulance	50,000 20,000	70,000
Salaries to Staff		85,000		i
		775,500		775,500

                                     

Balance Sheet

as on March 31, 2013

Liabilities	Amount (Rs)	Amount (Rs)	Assets	Amount (Rs)	Amount (Rs)
Capital Fund		1019,900	Furniture		40,000
Opening Balance	10,37,000		Building	10,00,000	950,000
Add: Life Membership Fees	27,500		Less: Depreciation	50,000
Less: Deficit	44,600		Ambulance	350,000	330,000
Bank Loan		600,000	Less: Depreciation	20,000
Outstanding Bill for Drugs		45,000	Hospital Equipment		295,000
			Stock of Drugs		20,000
			Cash in Hand		29,900
		16,64,900			16,64,900