From the following data, prepare an Income and Expenditure Account for the year ended 31st December 2019, and Balance Sheet as at that date of the Jeevan Hospital: Receipts and Payments Account for the
year ended 31 December, 2019
₹
800
PAYMENTS
Salaries
7,200 for 2018)
By
RECEIPTS
Balance b/d
Cash
To
31,200
KSHITU ACADEMY
Bank
To Subscriptions:
For 2018
For 2019
For 2020
Government Grant
For building
For maintenance
Fees from sundry
Patients
Donations (not to be
capitalized)
Net collections from
benefit shows
Additional information:
05.09.2020
6,000 By
5,100
24,500 2,400
80,000
20,000
4,800 8,000
6,000
1.56.800
By By
By
By By
By
By By By
Value of building under construction as on 31.12.2019
Value of hospital equipment on 31.12.2019 Building Fund as on 1.1.2019
Subscriptions in arrears as on 31.12.2018 Investments in 8% Govt. securities were made on 1st July, 2019.
CA FOUNDATION
17,000
6,000 50,000
2,400
15,600
2,000
2,400
2,000
20,000
5.200
Hospital Equipment
Furniture purchased Additions to Building
Printing Stationery
Diet expenses
Rent and rates
300 for 2020)
Electricity and water
charges
office expenses
Investments
Balances:
Cash
Bank
and
To
To
To
1.400 6.800
8.200 1.56.800
1,40,000
51,000
80,000
6,500
Answers
Answer:
From the following data, prepare an Income and Expenditure Account for the year ended 31st December 2019, and Balance Sheet as at that date of the Jeevan Hospital: Receipts and Payments Account for the
year ended 31 December, 2019
₹
800
PAYMENTS
Salaries
7,200 for 2018)
By
RECEIPTS
Balance b/d
Cash
To
31,200
KSHITU ACADEMY
Bank
To Subscriptions:
For 2018
For 2019
For 2020
Government Grant
For building
For maintenance
Fees from sundry
Patients
Donations (not to be
capitalized)
Net collections from
benefit shows
Additional information:
05.09.2020
6,000 By
5,100
24,500 2,400
80,000
20,000
4,800 8,000
6,000
1.56.800
By By
By
By By
By
By By By
Value of building under construction as on 31.12.2019
Value of hospital equipment on 31.12.2019 Building Fund as on 1.1.2019
Subscriptions in arrears as on 31.12.2018 Investments in 8% Govt. securities were made on 1st July, 2019.
CA FOUNDATION
17,000
6,000 50,000
2,400
15,600
2,000
2,400
2,000
20,000
5.200
Hospital Equipment
Furniture purchased Additions to Building
Printing Stationery
Diet expenses
Rent and rates
300 for 2020)
Electricity and water
charges
office expenses
Investments
Balances:
Cash
Bank
and
To
To
To
1.400 6.800
8.200 1.56.800
1,40,000
51,000
80,000
6,500
%
Answer:
Expenditure Amount
To medicines consumed (WN 2 and 3) 2,40,000
To Honorarium to Doctors 1,00,000
To salaries 2,75,000
To sundry Expenses 5,000
To Depreciation on:
Equipments ₹ (2,10,000+1,50,000-3,00,000) 60,000
Building ₹ (4,00,000-3,80,000) 20,000
Total 7,00,000
Income: Amount
By subscriptions 5,00,000
Add: subscriptions Due 10,000(31.3.19)
subscriptions Rec in advance(1.4.18)10,000 20,000
Total 5,20,000
Less: subscriptions Due(1.4.18) 5,000
subscriptions Rec in advance (31.3.19) 5,000 10,000 5,10,000
By interest on investments 70,000
By charity show proceeds 30,000
Less charity show expenses 10,000 20,000
By general donations 45,000
By deficit excess of expenditure over income 55,000
Total 7,00,000
Liabilities Amount
Capital fund (WN 1) 16,95,000
Add donations ( medical camps) 1,00,000
Total 17,95,000
Less deficit excess of expenditure over income 55,000
Subscriptions received in advance creditors for
medicines Polio Eradication Fund (WN ) 70,000
Less medicines polio 50,000
Total 18,85,000
Assets Amount
Building 4,00,000
Less depreciation 20,000 3,80,000
Equipments 2,10,000
Add purchase 1,50,000
Total 3,60,000
Less depreciation 60,000 3,00,000
Stocks of medicine 1,50,000
7% investments (WN4) 10,00,000
Subscription due 10,000
Cash in hand 15,000
Cash at bank 30,000
Total 18,85,000
Liabilities Amount
Subscription received in advance 10,000
Creditors for medicine 80,000
Capital fund 16,95,000
Total 17,85,000
Assets Amount
Building 4,00,000
Equipments 2,10,000
Stock of medicines 1,00,000
Subscription due 5,000
7% investment (WN 4) 10,00,000
Cash in hand 20,000
Cash at bank 50,000
Total 17,85,000
2. Purchase of Medicines = Amount owing to medicine suppliers (31.3.2019) + Payment for medicines- Amount due to medicine suppliers (1.4.1.2018) = Rs. 1,20,000 + Rs. 2,50,000- Rs 80,000 = Rs. 2,90,000.
3.Medications used = Opening Stock + Purchase - Closing Stock
= Rs 1,00,000 + Rs 2,90,000 (WN 2) - Rs 1,50,000 = Rs 2,40,000
4. The receipt of Rs 70,000 in interest on investments in 2018-19 implies that there were investments at the start of the accounting year.
The interest rate is set at 7%.
As a result, the value of investments is equal to 100/7Rs70,000=Rs10,000,000.
5. A government grant for polio eradication is available. As a result, it is credited to the Polio Eradication Fund, and expenses associated with it are subtracted from it.
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