question_answer

The following is the receipts and payments account of Ananda Hospital for the year ended on 31st March, 2018. You are required to prepare income and expenditure account for the year ended on 31st March, 2018 and balance sheet as on that date. Receipts and Payments Account Dras on 31st March, 2018Cr

Receipts	Amt (Rs.)	Payments	Amt (Rs.)
To Balance b/d	23,800	By Medicines	92,400
To Grant	56,000	By Salaries	75,600
To Subscription	1,34,400	By Fees to Doctors	67,200
To Donation	42,000	By General Expenses	3,360
To Proceeds from Charity Show	33,600	By Equipment?s	42,000
To Interest on Investment @ 9% p.a.	25,200	By Charity Show Expenses	11,200
		By Balance c/d	23,240
	3,15,000		3,15,000

Other Information

Particulars	31st Mach, 2017 (Rs.)	31st March, 2018 (Rs.)
(i) Subscription-in arrears	1,400	2,800
(ii) Subscription-in-advance	4,200	3,500
(iii) Stock of Medicines	30,800	35,000
(iv) Amount due to Suppliers of Medicines	19,600	32,200
(v) Value of Equipment?s	75,600	95,200
(vi) Value of Building	1,90,400	1,79,200

Answer:

Income and Expenditure Account Drfor the year ending 31st March, 2018Cr

Expenditure		Amt (Rs.)	Income		Amt (Rs.)
To Medicines	92,400		By Grant
(+) Opening Stock	30,800		By Subscription	1,34,400
Closing Creditors	32,200		(+) Outstanding c/y	2,800
	1,55,400		Prepaid p/y	4,200
(-) Closing Stock	(35,000)			1,41,400
Opening Creditors	(19,600)	1,00,800	(-) Outstanding p/y	(1,400)
To Salaries		75,600	Prepaid c/y	(3,500)	1,36,500
To Fees to Doctors		67,200	By Donation		42,000
To General Expenses		3,360	By Proceeds from Charity Show		33,600
To Charity Show Expenses		11,200	By Interest on Investment		25,200
To Depreciation on Equipment?s
Opening Balance	75,600
(+) Purchases	42,000
	1,17,600
(-) Closing Balance	(95,200)	22,400
To Depreciation on Building		11,200
To Excess of Income over
Expenditure		1,540
		2,93,300			2,93,300

Balance Sheet as at 31st March, 2018

Liabilities		Amt (Rs.)	Assets	Amt (Rs.)
Advance Subscription		3,500	Cash	23,240
Suppliers of Medicines		32,200	Outstanding Subscription	2,800
Capital Fund	5,78,200		Medicines	35,000
(+) Surplus	1,540	5,79,740	Equipment	95,200
			Building	1,79,200
			Investment	2,80,000
		6,15,440		6,15,440

Working Note Balance Sheet as at 31st March, 2017

Liabilities	Amt (Rs.)	Assets	Amt (Rs.)
Advance Subscription	4,200	Cash	23,800
Suppliers of Medicines	19,600	Outstanding Subscription	1,400
Capital Fund (Balancing figure)	5,78,200	Medicines	30,800
		Equipment	75,600
		Building	1,90,400
		\[Investment\,\left( \frac{25,200}{9%} \right)\]	2,80,000
	6,02,000		6,02,000