# Question 53 Chapter 1 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

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 HospitalIncome 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

 70,000 X 100 7

Total on Investment = 10,00,000/-

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Also, Check out the solved question of previous Chapters: –