Maharashtra State BoardHSC Commerce 12th Board Exam
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(Accounts of a Charitable Hospital) From the following particulars relating to “Radha-Krishna Charitable Hospital” Pune. - Book Keeping and Accountancy

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Ledger

(Accounts of a Charitable Hospital)

From the following particulars relating to “Radha-Krishna Charitable Hospital” Pune. Prepare Income and Expenditure Account for the year ending 31.03.2020 and Balance Sheet as on that date.

Dr Receipts and payments Account for the year ending 31.03.2020. Cr
Receipts Amount ₹ Payments Amount ₹
To Balance b/d   By Medicines Purchased 41,000
Cash 8,230 By General Expenses 1,050
To Subscriptions 52,000 By Salaries 23,500
To Donations (General) 17,500 By Stationery 2,000
To Interest in Investments 10,000 By Expenses on Charity Show 550
To Proceeds from Charity Show 8,530 By Surgery and Dispensary Exp 4,200
    By Equipments 10,000
    By Balance c/d  
    Cash in Hand 960  
    Cash at Bank 13,000 13,960
  96,260   96,260

Additional Information :

Particulars 01.04.2019 ₹ 31.03.2020 ₹
1. Subscription Due 310 350
2. Subscription Received in Advance 600 150
3. Stock of Medicine 8,000 11,000
4. Estimated Value of Equipment 15,000 ?
5. Building 40,000 ?
6. Capital Fund 1,70,940 ?
7. 10 % Investment 1,00,000 ?

Provide Depreciation on Equipments ₹ 1,900 and on Building ₹ 1,500

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Solution

 

Dr

In the books of Radha-Krishna Charitable Hospital, Pune

Income and Expenditure Account for the year ended 31st March 2020

Cr
Expenditure Amount
(₹)
Amount
(₹)
Income Amount
(₹)
Amount
(₹)
To Medicines Consumed     By Subscriptions 52,000  
Opening Stock 8,000   Add: Outstanding of Current Year 350  
Add: Purchases 41,000   Add: received in Advance in Previous Year 600  
  49,000     52,950  
Less: Closing Stock 11,000 38,000 Less: received in Current Year of the Previous Year 150  
To General Expenses   1,050 Less: Subscription due of Previous Year 310 52,490
To Salaries   23,500 By Donations (General)   17,500
To Stationery   2,000 By Interest on Investments   10,000
To Expenses on charity show   550 By Proceeds from Charity Show   8,530
To Surgery and Dispensary Expense   4,200      
To Depreciation          
Equipments 1,900        
Building 1,500 3,400      

To Surplus

(Excess of income over expenditure)

  15,820      
    88,520     88,520

 

Balance Sheet as on 31st March 2020

Liabilities Amount
(₹)
Amount
(₹)
Assets Amount
(₹)
Amount
(₹)
Capital Fund 1,70,940   Outstanding Subscription   350
Add : Surplus  15,820 1,86,760 Closing Stock of Medicines   11,000
Subscription received in Advance   150 Equipments opening Balance 15,000  
      Add: Purchases 10,000  
        25,000  
      Less: Depreciation 1,900 23,100
      Buildings 40,000  
      Less: Depreciation 1,500 38,500
      10% Investments   1,00,000
      Cash in Hand   960
      Cash at Bank   13,000
    1,86,910     1,86,910

Working Notes :

(1) To find medicines consumed, here in the opening stock, purchases is added and the closing stock of medicine is subtracted.

(2) For equipment, in opening balance, add equipment purchased during the year and subtract depreciation to get the closing balance of equipment.

(3) Interest ₹ 10,000 is received on 10 % investments means there is no outstanding interest.

Concept: Income and Expenditure Account
  Is there an error in this question or solution?
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APPEARS IN

Balbharati Book-keeping and Accountancy 12th Standard HSC Maharashtra State Board
Chapter 2 Accounts of ‘Not for Profit’ Concerns
Exercise 2 (Practical Problems) | Q 6. | Page 117
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