Question 53 Chapter 1 of +2-A

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.PaymentsRs.
To Cash in Hand on 1st April 201871,300By Medicines​3,05,900
To Subscriptions4,79,960By Doctor’s Honorarium90,000
To Donations1,45,000By Salaries2,75,000
To Interest on Investment @7% for a full year70,000By Petty Expenses4,610
To Proceeds from Charity Show1,04,500By Equipment1,50,000
  By Expenses on Charity Show7,500
  By Cash in Hand on 31st March 201837,750
 8,70,760 8,70,760

 

Additional Information: As at 1st April 2018As 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 HospitalIncome and Expenditure Account
(for the year ended 31st March 2019)
Expenditure
AmountIncome
Amount
To Medicine3,05,900 By Subscriptions *14,79,960 
Add: Opening Stock88,100 Add: O/s at the end2,800 
Less: Closing Stock97, 4002,96,600 Adv. in the Beginning640 
To Doctor’s Honorarium 90,000Less: O/s in the Beginning2,400 
To Salary 2,75,000Adv. at the end1,0004,80,000
To Petty Expenses 4,610By Donations 1,45,000
To Expenses on Charity Show 7,500By Interest on Investments 70,000
To Depreciation on Equipment *2 46,000By 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
AmountAssets
Amount
Advanced Subscription640Subscription Due2,400
  Stock of Medicines88,100
  Equipment2,12,000
  Building4,00,000
  Cash in Hand4,00,000
Capital Fund(Balancing Figure)17,73,160Investments *310,00,000
 17,73,800  17,73,800

 

Balance Sheet (for the year ended 31st March 2019)
Liabilities
AmountAssets
Amount
Advanced Subscription 1,000Subscription Due 2,800
Capital Fund17,73,160 Stock of Medicines 97,400
Add: Surplus59,79018,32,950Equipment2,12,000 
   Add: Purchases1,50,000 
   Less: Depreciation *246,0003,16,000
   Building4,00,0002,300
   Less: Depreciation *320,0004,000
   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 year47,996
Add: – Subscription outstanding at the end of the year280
Subscription received in advance in the beginning of the year64
 48,340
Less: – Subscription outstanding in the beginning of the year240
Subscription received in advance at the end of the year100
The amount for subscription credited to the Income and Expenditure A/c48,000

*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 X100
Rate of Interest

 

70,000X100
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)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

 

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 1 min - Question 53 Chapter 1 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

2 Comments

  1. Aditi Tripathi

    July 27, 2020

    In question of Megha…….why you write down outstanding rent. In question where this point is given….I request you please show me. I have doubt …

    1. Sarbjit Singh

      July 27, 2020

      Thanks for the comment.
      Sorry, the outstanding rent is not related to this question. It was a mistake, So please ignore it. we have correct this mistakte.

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