Question

The following is the Receipts and Payments account of Apollo Hospital for the year ended 31st March, 2012.

Receipts and Payments A/c

$\begin{array}{cccc}\text{Receipts}& \text{Amount(Rs)}& \text{Payments}& \text{Amount (Rs)}\\ \text{To Balance b/d}& 8,500& \text{By Pament for Medicines}& 33,000\\ \text{To Subscriptions}& 4,000& \text{by Fees to Doctors}& 24,000\\ \text{To Donations}& 15,000& \text{By Salaries}& 27,000\\ \text{To Interest on Investments}@9\%& & \text{By Equipments Purchased}& 15,000\\ \text{for the year}& 9,000& \text{By Charity Show Expenses}& 4,000\\ \text{To Proceeds from Charity Show}& 12,000& \text{By Sundry Expenses}& 1,200\\ \text{To Grant-in-Aid}& 20,000& \text{By Balance c/d}& 8,300\\ & \underset{–}{\overline{1,12,500}}& & \underset{–}{\overline{1,12,500}}\end{array}$

$\begin{array}{ccc}\text{(a)Other Information:}& \mathrm{1.4.2011}& \mathrm{31.3.2012}\\ \text{(b)Subscription received in advance}& 500& 1,000\\ \text{(c)Stock of Medicines}& 10,000& 15,000\\ \text{(d)Amount due to Medicine Suppliers}& 8,000& 12,000\\ \text{(e)Value of Equipments}& 25,000& 33,000\\ \text{(f)Value of Buildings}& 70,000& 65,000\end{array}$

You are required to prepare:

(i) Income and Expenditure Account for the year ended 31st March, 2021; and

(ii) Balance Sheet as on that date.

Answer 1

The following is the Receipts and Payment accountof Apollo Hospital for the year ended 31st March, 2012.

$\begin{array}{cccc}\text{Expenditure}& \text{Amount}& \text{Income}& \text{Amount}\\ \text{To payment for medicine}33,000& & \text{By Subscription}48,000& \\ \text{Add:Opening Stock}10,000& & \text{Add: Due at the end}1,000& \\ \text{Clsoing creditors}\underset{–}{12,000}& & \text{Adv, in the begining}\underset{–}{1,000}& \\ 55,000& & 50,000& \\ \text{Less: Closing Stock}15,000& & \text{Less:Due in the beginning}500& \\ \text{Opening Creditors}\underset{–}{8,000}& 32,000& \text{Advance at the end}\underset{–}{500}& 49,000\\ \text{To fees to Doctors}& 24,000& \text{By Donation}& 15,000\\ \text{To Salaries}& 27,000& \text{By Interest on Investment}& 9,000\\ \text{To Charity show Expenses}& 4,000& \text{By Proceed from Charity show}& 12,000\\ \text{To Sundry Expenses}& 1,200& \text{By Grant in Aid}& 20,000\\ \text{To Depreciation on:}& & & \\ \text{Equipmet}7,000& & & \\ \text{Building}\underset{–}{5,000}& 12,000& & \\ \text{To Surplus}& 4,800& & \\ & \underset{–}{\overline{1,05,000}}& \underset{–}{\overline{1,05,000}}& \end{array}$

Balance Sheet
As at 31st March, 2011

$\begin{array}{cccc}\text{Liabilities}& \text{Amount}& \text{Assets}& \text{Amount}\\ \text{Subscription recd. in Advance}& 500& \text{Cash in Hand}& 8,300\\ \text{Amount due to medicine suppliers}& 12,000& \text{Subscription due}& 1,000\\ \text{Capital found}2,02,000& & \text{Stock of medicine}& 15,000\\ \text{Add: Surplus}+\underset{–}{4,800}& & \text{Equipment}& 33,000\\ & & \text{Building}& 65,000\\ & & \text{Investment}& 1,00,000\\ & \underset{–}{\overline{2,22,300}}& & \underset{–}{\overline{2,22,300}}\end{array}$

Working Notes:

Balance Sheet
As at 31st March, 2011

$\begin{array}{cccc}\text{Liabilities}& \text{Amount}& \text{Assets}& \text{Amount}\\ \text{Subsription recd in Advance}& 1,000& \text{Cash in hand}& 8,500\\ \text{Amount due to Medicine suppliers}& 8,000& \text{Subscription due}& 500\\ \text{Capital fund (Balancing figure)}& 2,05,000& \text{Stock of medicines}& 10,000\\ & & \text{Equipment}& 25,000\\ & & \text{Building}& 70,000\\ & & \text{Investment}& 1,00,000\\ & \underset{–}{\overline{2,14,000}}& & \underset{–}{\overline{2,14,000}}\end{array}$