Chapter: Accounts of 'Not for Profit' Concerns· Book-Keeping & Accountancy
Dr. Anish Korgaonkar started practice of Medical Practioner on 1st April, 2019. He gives you the Receipts and Payments Account for the year ended 31st March, 2020 and the adjustments.Prepare Income and Expenditure Account for the year ended 31st Marc…
Q.6 Dr. Anish Korgaonkar started practice of Medical Practioner on 1st April, 2019. He gives you the Receipts and Payments Account for the year ended 31st March, 2020 and the adjustments.
Prepare Income and Expenditure Account for the year ended 31st March, 2020 and Balance Sheet as on that date:
Dr. Anish Korgaonkar
Receipts and Payments Account for the year ended 31st March, 2020
| Dr. Receipts | Amount (₹) | Cr. Payments | Amount (₹) |
|---|---|---|---|
| To Cash introduced | 50,000 | By Furniture | 16,000 |
| To Visit fees | 20,000 | By Equipment | 20,000 |
| To Receipts from dispensary | 60,000 | By Drugs | 14,000 |
| To Sundry receipts | 10,000 | By Salaries | 24,000 |
| By Rent | 12,000 | ||
| By Conveyance | 8,000 | ||
| By Stationery | 1,000 | ||
| By Electrical charges | 10,000 | ||
| By Journals | 1,000 | ||
| By Drawings | 30,000 | ||
| By Balance c/d | 4,000 | ||
| 1,40,000 | 1,40,000 |
Additional information:
- Receipts in arrears are visit fees ₹ 4,000 and dispensary ₹ 1,000.
- Outstanding expenses – Rent ₹ 1,000 and Salaries ₹ 2,000.
- Stock of drugs ₹ 2,000.
- Depreciate furniture @ 8% p.a. and equipment ₹ 1,000.
- 40% of the conveyance expenses are for domestic use.