Question

From the following particulars relating to "Radha-Krishna Charitable Hospital". Prepare Income and Expenditure Account for the year ending 31 - 03 - 2023 and Balance Sheet as on that date.

Dr.	Receipts and Payments Account for the year ending on 31- 03 - 2023			Cr.
Receipts	Amount (₹)	Payments		Amount (₹)
To Balance b/d		By Medicines Purchased		82,000
Cash	16,460	By General Expenses		2,100
To Subscriptions	1,04,000	By Salaries		47,000
To Donations (General)	35,000	By Stationery		4,000
To Interest on Investments	20,000	By Expenses on Charity Show		1,100
To Proceeds from Charity Show		By Surgery and Dispensary Exp.		8,400
		By Equipments		20,000
		By Balance c/d
		Cash in Hand	1920	27,920
		Cash at Bank	26,000
	1,92,520			1,92,520

Additional Information:

Particulars	01-04-2022 (₹)	31 - 03-2023 (₹)
1. Subscription Due	620	750
2. Subscription Received in Advance	1,200	300
3. Stock of Medicines	16,000	22,000
4. Estimated Value of Equipments	30,000	?
5. Buildings	80,000	?
6. Capital Fund	3,41,880	?
7. 10 % Investment	2,00,000	?

Provide Depreciation on Equipments ₹ 3,800 and on Building ₹ 3,000.

Answer 1

Dr.	In the books of Radha-Krishna Charitable Hospital Income and Expenditure Account for the year ended 31st March, 2023				Cr.
Expenditure	Amount (₹)	Amount (₹)	Income	Amount (₹)	Amount (₹)
To Medicines Consumed			By Subscriptions	1,04,000	1,04,980
Opening Stock	16,000	76,000	Add: Outstanding of Current Year	700
Add: Purchases	82,000		Add: Received in Advance in Previous Year	1,200
	98,000			1,05,900
Less: Closing Stock	22,000		Less: Received in Current Year of the Previous Year	300
To General Expenses		2,100	Less: Subscription due of Previous Year	620
To Salaries		47,000	By Donations (General)		35,000
To Stationery		4,000	By Interest on Investments		20,000
To Expenses on Charity Show		1,100	By Proceeds from Charity Show		17,060
To Surgery and Dispensary Expense		8,400
To Depreciation Equipments	3800	6,800
Building	3000
To Surplus (Excess of income over expenditure)		31,640
		1,77,040			1,77,040

 

Balance Sheet as on 31st March, 2023
Liabilities	Amount (₹)	Amount (₹)	Assets	Amount (₹)	Amount (₹)
Capital Fund	3,41,880	3,73,520	Outstanding Subscription		700
Add : Surplus	31,640		Closing Stock of Medicines		22,000
Subscription Received in Advance		300	Equipments: Opening Balance	30,000	46,200
			Add : Purchases	20,000
				50,000
			Less : Depreciation	3,800
			Buildings	80,000	77,000
			Less : Depreciation	3,000
			10 % Investments		2,00,000
			Cash in Hand		1,920
			Cash at Bank		26,000
		3,73,820			3,73,820

Working Notes:

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

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

(3) Interest ₹ 20,000 is received on 10 % investments of ₹ 2,00,000 means there is no outstanding interest.