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Question
From the following information obtained from the books of 'Murlidhar Charitable Hospital', calculate the amount of medicines to be debited to the Income and Expenditure Account of the hospital for the year ended 31.03.2022.
| Particulars | 31.3.2021 Amount (₹) |
31.3.2022 Amount (₹) |
| Stock of medicines | 1,70,000 | 3,75,000 |
| Creditors for medicines | 5,40,000 | 8,25,000 |
During the year ₹ 11,49,000 were paid to the Creditors for medicines. Medicines of ₹ 3,30,000 were purchased in cash for emergency use.
Solution
| Dr. | In the Books of 'Murlidhar Charitable Hospital' Stock of Medicines Account |
Cr. | ||
| Particulars | Amount (₹) | Amount (₹) | Particulars | Amount (₹) |
| To Balance b/d | 1,70,000 | By Income and Expenditure A/c (Balancing figure) |
15,59,000 | |
| To Purchase | By Balance c/d | 3,75,000 | ||
| Cash | 3,30,000 | 17,64,000 | ||
| Credit | 14,34,000 | |||
| 19,34,000 | 19,34,000 | |||
| Dr. | Creditors for Medicines Account | Cr. | |
| Particulars | Amount (₹) | Particulars | Amount (₹) |
| To Cash A/c (Payment) | 11,49,000 | By Balance b/d | 5,40,000 |
| To Balance c/d | 8,25,000 | By Purchase (Bal. Fig.) | 14,34,000 |
| 19,74,000 | 19,74,000 | ||
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|
RECEIPTS AND PAYMENTS ACCOUNT (AN EXTRACT) |
||||
|
Dr. |
|
Cr. | ||
| Receipts | ₹ |
Payments |
₹ | |
|
|
By Payments for Medicines | 1,50,000 | ||
Additional information :
| As at 1st April, 2018 (₹) |
As at 31st March, 2019 (₹) |
|
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| Creditors for Medicines | 40,000 | 60,000 |
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| (₹) | (₹) | |
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| Receipts and Payments Account of Golden Club for the year ended 31.3.2022 |
|||||
| Receipts | Amount (₹) | Amount (₹) | Payments | Amount (₹) | Amount (₹) |
| Balance b/d | Honorarium | 75,000 | |||
| Cash | 70,000 | 2,70,000 | Stationery | 15,000 | |
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| 6,01,000 | 6,01,000 | ||||
Additional Information:
- Club had 1750 members each paying an annual subscription of ₹ 100.
- Furniture was purchased on 31.3.2022.
