Following is the Receipts and Payments Account and additional information of Kalpana Hospital, Sakri.
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Receipts and Payments Account for the year ended on 31st March, 2010 |
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Dr. |
Cr. |
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Receipts |
Amount |
Payments |
Amount |
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To Balance b/d |
6,000 |
By Medicines |
10,000 |
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To Subscriptions: |
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By Honorarium to Doctors |
75,000 |
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2008-2009 |
7,500 |
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By Ambulance Maintenance |
44,000 |
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2009-2010 |
95,000 |
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By Hospital Equip. purchased |
30,000 |
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2010-2011 |
15,000 |
1,17,500 |
By Furniture purchased |
25,000 |
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To Donations |
55,000 |
By Fixed Deposits |
1,00,000 |
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To Life Membership Fees |
25,000 |
By Balance c/d (31.3.10) |
69,500 |
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To Hospital Receipts (Revenue) |
1,50,000 |
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|
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|
|
3,53,500 |
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3,53,500 |
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Additional Information:
(1) Outstanding subscription for 2009-2010 is amounted to Rs. 5,000.
(2) Hospital equipments and furniture were purchased on 1.10.2009 and both were to be depreciated at 20% p. a.
(3) Life membership fees are to be capitalized.
(4) Donations represent donations for Building fund.
(5) Staff salary for the current year is outstanding Rs. 7,500.
(6) On 1.4.2009, the hospital had the following assets and liabilities:
Land Rs. 2,50,000, Investments Rs. 50,000, Ambulance Rs. 1,02,500, Bank Loan Rs. 2,00,000.
(7) Capital Fund as on 1.4.2009 was amounted to Rs. 2,16,000.
Prepare: Income and Expenditure Account for the year ending 31st March, 2010 and the Balance Sheet as on that date.
Solution
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In the books of Kalpana Hospital, Sakri |
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Income and Expenditure Account for the year ending March 31,2010 |
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Dr. |
|
Cr. |
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Expenditure |
Amount (Rs) |
Income |
Amount |
|
|
Outstanding Staff Salary |
7,500 |
Subscription |
95,000 |
|
|
Medicines |
10,000 |
Add: Outstanding at the end |
5,000 |
1,00,000 |
|
Honorarium to Doctors |
75,000 |
Hospital Receipts |
1,50,000 |
|
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Ambulance Maintenance |
44,000 |
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|
|
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Depreciation on Hospital Equipment |
3,000 |
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|
|
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Depreciation on Furniture |
2,500 |
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|
|
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Surplus (Excess of Income over Expenditure) |
1,08,000 |
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2,50,000 |
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2,50,000 |
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Balance Sheet as on March 31, 2010 |
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Liabilities |
Amount (Rs) |
Assets |
Amount |
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Capital Fund |
2,16,000 |
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Land |
|
2,50,000 |
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Add: Life Membership Fees |
25,000 |
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Hospital Equipment |
30,000 |
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|
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Add: Surplus |
1,08,000 |
3,49,000 |
Less: Depreciation @ 20% (6 months) |
3,000 |
27,000 |
|
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Donation for Building Fund |
55,000 |
Furniture |
25,000 |
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Salaries Outstanding |
7,500 |
Less: Depreciation @ 20% (6 months) |
2,500 |
22,500 |
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Bank Loan |
2,00,000 |
Investments |
50,000 |
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Advance Subscription |
15,000 |
Ambulance |
1,02,500 |
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Fixed Deposits |
1,00,000 |
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Bank |
69,500 |
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Outstanding Subscription |
5,000 |
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|
|
|
|
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6,26,500 |
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6,26,50
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Working Notes:
WN1 Calculation of Depreciation\[\text{On Hospital Equipment} = 30,000 \times\frac{20}{100}\times\frac{6}{12}= Rs 3,000\]
\[\text{On Furniture} = 25,000 \times\frac{20}{100}\times\frac{6}{12}= Rs 2,500\]
