Question 39 Chapter 1 of Class 12 Part - 1 VK Publication

Question 39 Chapter 1 of Class 12 Part – 1

Table of Contents

39. Following is Receipts and Payments Account of Free Medical Aid Society for the
31st March, 2018:

Receipt and Payments Account (An Extract)
For the year ended 31st March, 2018

Receipts	Rs.	Payments	Rs.
To Cash in hand on 1st April, 2017	7,000	By Payment for Medicines	30,000
To Subscriptions	50,000	By Honorarium to Doctors	10,000
To Sundry Donations	14,500	By Salaries	27,500
To Interest on Investment @ 7% for the year 10,000	7,000	By Sundry Expenses	500
To Charity Show Proceeds	10,000	By Equipment purchased	15,000
		By Charity Show Expenses	1,000
		By Cash in hand on 31st March, 2018	4,500
	88,500		88,500

Additional Informations:

Items April, 2017 March	April, 2017 March	April, 2017 March
(i) Subscription due	500	1,000
(ii) Subscription received in advance	1,000	500
(iii) Stock of Medicines	10,000	15,000
(iv) Amount due to medicines suppliers	8,000	12,000
(v) Value of Equipments	21,000	30,000
(vi) Value of Building	40,000	33,000

You are required to prepare:
(a) Income and Expenditure Account for the year ended 31st March, 2018.
(b) Balance Sheet as at that date

The solution of Question 39 Chapter 1 of Class 12 Part – 1: –

Income and Expenditure Account

For the year ended on 31st March, 2018

Expenditure		Amount	Income		Amount
To Medicines consumed:
Payment for Medicines	30,000		By Subscriptions	50,000
Add: Opening Stock of Medicines	10,000		Add. Outstanding at the end	1,000
Add: Outstanding amount for Medicine Suppliers at the end	12,000		Less: Outstanding in the beginning	(500)
Less: Closing Stock of Medicine	(15,000)		Add: Received in Advance (beginning) 1,000	1,000
Less: Outstanding amount for Medicine Suppliers in the beginning	(8,000)	29,000	Less: Received in Advance (end)	(500)	51,000
To Honorarium to Doctors		10,000	By Sundry Donations		14,500
To Salaries		27,500	By Interest on Investments		7,000
To Sundry expenses		500	By Charity Show Proceeds	10,000
To Depreciation on Equipments			Less: Charity Show Expenses	1,000	9,000
Equipment Purchased	15,000
Add Opening Stock of Equipment	21,000
	36,000
Less: Closing stock of Equipment	30,000	6,000
To Depreciation on Building (40,000-38,000) 2,000		2,000
To Surplus		6,500
		81,500			81,500

Opening Balance Sheet (as at 1st April 2017)

Liabilities	Amount	Assets	Amount
Subscriptions Received in Advance	1,000	Cash in hand	7,000
Amount due to Medicines Suppliers	8,000	Investments	1,00,000
Capital Fund (Balancing figure)	1,69,500	Outstanding Subscriptions	500
		Stock of medicines	10,000
		Equipments	21,000
		Building	40,000
	1,78,500		1,78,50

Balance Sheet (as at 1st March 2018)

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Liabilities	Amount	Assets	Amount
Subscriptions Received in Advance	1,000	Cash in hand	4,500
Amount due to Medicines Suppliers	8,000	Investments	1,00,000
Capital Fund (Balancing figure)	1,69,500	Outstanding Subscriptions	1,000
Add. Surplus	6,500	Stock of medicines	15,000
		Equipments	30,000
		Building	38,000
	1,88,500		1,88,50