Question 53 Chapter 1 of +2-A
53. From the following particulars relating to the Ramakrishna Mission Charitable Hospital, prepare Income and Expenditure Account for the year ended 31st March 2019 and Balance Sheet as at that date.
| RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March 2019 | |||
| Receipts | Rs. | Payments | Rs. |
| To Cash in Hand on 1st April 2018 | 71,300 | By Medicines | 3,05,900 |
| To Subscriptions | 4,79,960 | By Doctor’s Honorarium | 90,000 |
| To Donations | 1,45,000 | By Salaries | 2,75,000 |
| To Interest on Investment @7% for a full year | 70,000 | By Petty Expenses | 4,610 |
| To Proceeds from Charity Show | 1,04,500 | By Equipment | 1,50,000 |
| By Expenses on Charity Show | 7,500 | ||
| By Cash in Hand on 31st March 2018 | 37,750 | ||
| 8,70,760 | 8,70,760 | ||
| Additional Information: | As at 1st April 2018 | As at 31st March 2019 |
| (₹) | (₹) | |
| Subscriptions Due | 2,400 | 2,800 |
| Subscriptions Received in Advance | 640 | 1,000 |
| Stock of Medicines | 88,100 | 97,400 |
| Estimated value of Equipment | 2,12,000 | 3,16,000 |
| Building (cost less depreciation) | 4,00,000 | 3,80,000 |
The solution of Question 53 Chapter 1 of +2-A:
| Books of Rama Krishna Mission Charitable Hospital Income and Expenditure Account (for the year ended 31st March 2019) |
||||||
| Expenditure |
Amount | Income |
Amount | |||
| To Medicine | 3,05,900 | By Subscriptions *1 | 4,79,960 | |||
| Add: Opening Stock | 88,100 | Add: O/s at the end | 2,800 | |||
| Less: Closing Stock | 97, 400 | 2,96,600 | Adv. in the Beginning | 640 | ||
| To Doctor’s Honorarium | 90,000 | Less: O/s in the Beginning | 2,400 | |||
| To Salary | 2,75,000 | Adv. at the end | 1,000 | 4,80,000 | ||
| To Petty Expenses | 4,610 | By Donations | 1,45,000 | |||
| To Expenses on Charity Show | 7,500 | By Interest on Investments | 70,000 | |||
| To Depreciation on Equipment *2 | 46,000 | By Proceeds from Charity Show | 1,04,500 | |||
| To Depreciation on Building*3 | 20,000 | |||||
| By Deficit (Balancing Figure) | 59,790 | |||||
| 7,99,500 | 7,99,500 | |||||
* Means: – see the working note for calculation
| Balance Sheet (for the year ended 31st March 2018) |
||||
| Liabilities |
Amount | Assets |
Amount | |
| Advanced Subscription | 640 | Subscription Due | 2,400 | |
| Stock of Medicines | 88,100 | |||
| Equipment | 2,12,000 | |||
| Building | 4,00,000 | |||
| Cash in Hand | 4,00,000 | |||
| Capital Fund(Balancing Figure) | 17,73,160 | Investments *3 | 10,00,000 |
|
| 17,73,800 | 17,73,800 | |||
| Balance Sheet (for the year ended 31st March 2019) |
||||||
| Liabilities |
Amount | Assets |
Amount | |||
| Advanced Subscription | 1,000 | Subscription Due | 2,800 | |||
| Capital Fund | 17,73,160 | Stock of Medicines | 97,400 | |||
| Add: Surplus | 59,790 | 18,32,950 | Equipment | 2,12,000 | ||
| Add: Purchases | 1,50,000 | |||||
| Less: Depreciation *2 | 46,000 | 3,16,000 | ||||
| Building | 4,00,000 | 2,300 | ||||
| Less: Depreciation *3 | 20,000 | 4,000 | ||||
| 7% Investments *4 | 10,00,000 | |||||
| Cash in Hand | 37,750 | |||||
| 18,33,950 | 18,33,950 | |||||
* Means: – see the working note for calculation
Working Note: –
*1:- Calculation of Amount of Subscriptions
| Subscription received During the year | 47,996 |
| Add: – Subscription outstanding at the end of the year | 280 |
| Subscription received in advance in the beginning of the year | 64 |
| 48,340 | |
| Less: – Subscription outstanding in the beginning of the year | 240 |
| Subscription received in advance at the end of the year | 100 |
| The amount for subscription credited to the Income and Expenditure A/c | 48,000 |
*2:- Calculate Depreciation on Equipment
Depreciation = Opening Balance of Equipment + Equipment Purchased During the year – Closing Balance of Equipment
Opening Balance of Equipment = 2,12,000
Closing Balance of Equipment = 3,16,000
Equipment Purchased During the year = 1,50,000
= 2,12,000 + 1,50,000 – 3,16,000
Depreciation = 46,000
*3:- Calculate Depreciation on Building
Depreciation = Opening Balance of Building + Building Purchased During the year – Closing Balance of Building
Opening Balance of Building = 4,00,000
Closing Balance of Building = 3,80,000
Building Purchased During the year = 0
= 4,00,000 + 0 – 3,80,000
Depreciation = 20,000
*4:- Calculation of the amount of Investment X
| = amount of Interest | X | 100 |
| Rate of Interest |
Advertisement-X
| 70,000 | X | 100 |
| 7 |
Total on Investment = 10,00,000/-
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Also, Check out the solved question of previous Chapters: –
T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)
- Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
- Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
- Chapter No. 3 – Goodwill: Nature and Valuation
- Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
- Chapter No. 5 – Admission of a Partner
- Chapter No. 6 – Retirement/Death of a Partner
- Chapter No. 7 – Dissolution of a Partnership Firm
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 8 – Company Accounts – Accounting for Share Capital
- Chapter No. 9 – Company Accounts – Issue of Debentures
- Chapter No. 10 – Redemption of Debentures
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
- Chapter No. 4 – Accounting Ratios
- Chapter No. 5 – Cash Flow Statement
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