Question

Q. 6) Dr. Anil Shah commenced medical practice on 01.04.2019. He [12]
has prepared the following Receipt and Payment Account for the
year ended 31.03.2020.
Dr. Receipt and Payment A/c for the year ended 31.03.2020 Cr.
Receipts
Amt.
Payments
Amt.
To Cash introduced
30.000 By Furniture (1.4 2019) 40,000
(Capital Fund)
By Honorarium to
To Income from Visits 50,000 Doctors
10,000
To Receipts from
By Equipment (1.10.11) 50,000
Dispensary
70,000
To Interest received on
By Purchase of
Investments
700 medicines
12,000
To Miscellaneous
300 By Compounder's
Receipts
Salary
8,000
By Rent of Dispensary 9,000
By Conveyance charges 7.000
By Stationery
500
By Investments
10,000
By Balance c/d
4,500
1,51,000
1,51,000
Additional Information:
1) 6,000 were still to be received on account of the visits.
2) Outstanding expenses were: Compounder's Salary 3,000: Bill of
Stationery < 1,000 and Rent of Dispensary ? 3,000.
3) 25% of the amount of conveyance charges were for private use.
4) Stock of Medicines on hand was estimated at 3,000.
5) Furniture and Equipments are to be depreciated at 10% p.a.
Prepare: Income and Expenditure Account for the year ended 31st
March, 2020 and Balance Sheet as on that date.​

Answer 1

Answer:

Anil Shah commenced medical practice on 01.04.2019. He [12]

has prepared the following Receipt and Payment Account for the

year ended 31.03.2020.

Dr. Receipt and Payment A/c for the year ended 31.03.2020 Cr.

Receipts

Amt.

Payments

Amt.

To Cash introduced

30.000 By Furniture (1.4 2019) 40,000

(Capital Fund)

By Honorarium to

To Income from Visits 50,000 Doctors

10,000

To Receipts from

By Equipment (1.10.11) 50,000

Dispensary

70,000

To Interest received on

By Purchase of

Investments

Answer 2

Given: Receipts and Payments Account of Dr. Anil Shah for the year ended 31st March, 2020 is given.

To Prepare Income and expenditure Account and Balance Sheet as on 31st march, 2020.

Explanation: