Question

Following is the Balance Sheet and Receipts and Payments Account of Ekveera Hospital Amravati.

Balance Sheet as on 1.4.2012

LIABILITIES	AMOUNT	ASSETS	AMOUNT
Capital Fund	502000	Cash in Hand	3000
Medical bill Unpaid	3000	Cash at Bank	6000
		Land and Building	400000
		Furniture	35000
		Equipments	60000
		Outstanding Subscription	1000
	505000		505000

 

Receipts and Payments Account for the year ended 31.3.2013

Receipts	Amount	Payments	Amount
To balance b/d		By Salaries	55000
Cash in Hand	3000	By Medicines	26000
Cash at Bank	6000	By Equipment purchased	10000
To Subscription [Includes Rs. 1000 received for previous year]	65000	By General Expenses	4300
To Sale of Old Furniture [Book value Rs. 15000]	10000	By Balance c/d
To Donations (Revenue)	22000	Cash in Hand	7700
To Life Membership Fees	12500	Cash at Bank	15500
	118500		118500

Adjustments:

(1) Outstanding subscription Rs. 6000.

(2) Capitalise the amount of life membership fees.

(3) Outstanding Salary Rs. 6000.

(4) Depreciate Land and Building by Rs. 10000 and Equipments by Rs. 15000.

(5) Unpaid medicine bill as on 1-4-2012 is still unpaid.

 

Prepare Income and Expenditure Account for the year ending 31.3.2013 and Balance Sheet as on that date.

 

Answer 1

In the books of Ekveera Hospital, Amravati.

Income and Expenditure A/c for the year ended 31.3.2013

 

Expenditure	Amount	Amount	Payments	Amount	Amount
To Salaries	55000		By Subscriptions	65000
Add: Outstanding of current year	6000	61000	Less: Outstanding of Last Year	1000
To Medicines		26000		64000
To General Expenses		4300	Add: Outstanding of Current Year	6000	70000
To Loss on Sale of Furniture. [15000 - 10000]		5000	By donations		22000
To Depreciation:
Land and Building	10000
Equipments	15000	25000
			By Expenditure Over Income [Deficit]		29300
		121300			121300

 

 

Balance Sheet of Ekveera Hospital, Amaravati as on 31.3.2013

 

 

Liabilities	Amount	Amount	Assets	Amount	Amount
Capital Fund	502000		Cash in Hand		7700
Add: Life Membership Fees	12500		Cash at Bank		15500
Less: Deficit	29300	485200	Land and Building	400000
Outstanding Salaries		6000	Less: Depreciation	10000	390000
Medicine bill unpaid		3000	Equipments [60000 + 10000]	70000
			Less: Depreciation	15000	55000
			Furniture [35000 - 15000]		20000
			Outstanding Subscription		6000
		494200			494200