Question

From the following particulars relating to the Ramakrishna Mission Charitable Hospital , prepare Income and Expenditure Account for the year ended 31st March, 2018 and Balance Sheet as at that date.

RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March, 2018
Dr.					Cr.
Receipts		₹	Payments	₹
To Cash in Hand on 1st April, 2017 To Subscriptions To Donations To Interest on Investment @ 7% for full year To Proceeds from Charity Show ​		71,300 4,79,960 1,45,000 70,000 1,04,500	By Medicines By Doctor's Honorarium By Salaries By Petty Expenses By Equipments By Expenses on Charity Show By Cash in Hand on 31st March, 2018	3,05,900 90,000 2,75,000 4,610 1,50,000 7,500 37,750 ​
		8,70,760		8,70,760

Additional Information:

	As at 1st April, 2017 (₹)	As at 31st March, 2018 (₹)
Subscriptions Due	2,400	2,800
Subscriptions Received	640	1,000
Stock of Medicines	88,100	97,400
Estimated value of Equipments	2,12,000	3,16,000
Building (cost less depreciation)	4,00,000	3,80,000

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Answer 1

Books of Rama Krishna Mission Charitable Hospital Income and Expenditure Account for the year ended March 31, 2016
Dr.							Cr.
Expenditure			Amount (Rs)	Income			Amount (Rs)
Medicine		30,590		Subscription		47,996
Add: Opening Stock		8,810		Add: Due for 2015-16		280
Less: Closing Stock		(9,740)	29,660	Less: Due for 2014-15		(240)
Doctor’s Honorarium			9,000	Less: Advance for 2016-17		(100)
Salaries			27,500	Add: Advance for 2015-16		64	48,000
Petty Expenses			461	Donations			14,500
Expenses on Charity Show			750	Interest on Investments			7,000
Depreciation on Equipments			4,600	Proceeds from Charity Show			10,450
Depreciation on Building			2,000
Surplus (Balancing Figure)			5,979
			79,950				79,950

Balance Sheet as on April 01, 2015
Liabilities	Amount (Rs)	Assets	Amount (Rs)
Advance Subscription	64	Subscription Due	240
Capital Fund (Balancing Figure)	1,77,316	Stock of Medicines	8,810
		Equipments	21,200
		Building	40,000
		Cash in Hand	7,130
		Investments	1,00,000
	1,77,380		1,77,380

Balance Sheet as on March 31, 2016
Liabilities		Amount (Rs)	Assets		Amount (Rs)
Advance Subscription		100	Subscription Due		280
Capital Fund	1,77,316		Stock of Medicines		9,740
Add: Surplus	5,979	1,83,295	Equipments	21,200
			Add: Purchases	15,000
				36,200
			Less: Depreciation	(4,600)	31,600
			Building	40,000
			Less: Depreciation	(2,000)	38,000
			Cash in Hand		3,775
			7% Investments		1,00,000
		1,83,395			1,83,395

Working Note:

Calculation of Value of Investments