Following information has been provided by Gajanan Charitable Hospital, Yavatmal. You are required to prepare Income and Expenditure Account for the year ending 31st March, 2021 and Balance sheet as on that date:Balance Sheet as on 1st April, 2020Lia…

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Q.6 Following information has been provided by Gajanan Charitable Hospital, Yavatmal. You are required to prepare Income and Expenditure Account for the year ending 31st March, 2021 and Balance sheet as on that date: Balance Sheet as on 1st April, 2020 LiabilitiesAmount (₹)AssetsAmount (₹) Capital Fund5,50,000Hospital Equipments1,52,000 Bank Loan3,25,000Ambulance2,00,000 Outstanding Bill for drugs25,000Building5,25,000 Stock of drugs21,000 Cash in hand2,000 9,00,0009,00,000 Receipts and Payments Account for the year ended 31st March, 2021 Dr. ReceiptsAmount (₹)Cr. PaymentsAmount (₹) To Balance b/d2,000By Staff Salary42,500 To Life Membership Fees15,000By Honorarium to Doctors2,00,000 To Hospital Receipts (Revenue)2,55,200By Repairs9,000 To Subscriptions1,11,000By Furniture22,500 By General Expenses8,000 By Purchase of drugs (includes ₹ 20,000 for 2019-2020)1,00,000 By Balance c/d1,200 3,83,2003,83,200 Adjustments: Depreciate Building by 5% p.a. and Ambulance by ₹ 15,000. On 31st March, 2021 Stock of drugs was valued at ₹ 11,000. Life Membership Fees has to be capitalised.

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Answer: Excess of expenditure over income (deficit) ₹ 24,550; Capital Fund ₹ 5,40,450; Balance Sheet total ₹ 8,70,450. Working notes Purchase of drugs for the current year = 1,00,000 – 20,000 (paid for 2019-20) = ₹ 80,000. Outstanding bill for drugs at the end = 25,000 – 20,000 = ₹ 5,000 (still unpaid for 2019-20). Drugs consumed = Opening stock 21,000 + Purchases 80,000 – Closing stock 11,000 = ₹ 90,000. Depreciation: Building 5,25,000 × 5% = ₹ 26,250; Ambulance ₹ 15,000. Life Membership Fees ₹ 15,000 is capitalised (added to Capital Fund). Furniture ₹ 22,500 is capital expenditure shown as an asset. Income and Expenditure Account for the year ended 31st March, 2021 Dr. ExpenditureAmount (₹)Cr. IncomeAmount (₹) To Staff Salary42,500By Hospital Receipts (Revenue)2,55,200 To Honorarium to Doctors2,00,000By Subscriptions1,11,000 To Repairs9,000By Excess of Expenditure over Income (Deficit)24,550 To General Expenses8,000 To Drugs consumed: Opening stock 21,000 Add: Purchases 80,000 Less: Closing stock 11,00090,000 To Depreciation: Building 26,250 Ambulance 15,00041,250 3,90,7503,90,750 Balance Sheet as on 31st March, 2021 LiabilitiesAmount (₹)AssetsAmount (₹) Capital Fund 5,50,000 Add: Life Membership Fees 15,000 Less: Deficit 24,5505,40,450Hospital Equipments1,52,000 Bank Loan3,25,000Ambulance 2,00,000 Less: Depreciation 15,0001,85,000 Outstanding Bill for drugs5,000Building 5,25,000 Less: Depreciation 26,2504,98,750 Furniture22,500 Stock of drugs11,000 Cash in hand1,200 8,70,4508,70,450

Following information has been provided by Gajanan Charitable Hospital, Yavatmal. You are required to prepare Income and Expenditure Account for the year ending 31st March, 2021 and Balance sheet as on that date:Balance Sheet as on 1st April, 2020Lia…

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Liabilities	Amount (₹)	Assets	Amount (₹)
Capital Fund	5,50,000	Hospital Equipments	1,52,000
Bank Loan	3,25,000	Ambulance	2,00,000
Outstanding Bill for drugs	25,000	Building	5,25,000
		Stock of drugs	21,000
		Cash in hand	2,000
	9,00,000		9,00,000

Dr. Receipts	Amount (₹)	Cr. Payments	Amount (₹)
To Balance b/d	2,000	By Staff Salary	42,500
To Life Membership Fees	15,000	By Honorarium to Doctors	2,00,000
To Hospital Receipts (Revenue)	2,55,200	By Repairs	9,000
To Subscriptions	1,11,000	By Furniture	22,500
		By General Expenses	8,000
		By Purchase of drugs (includes ₹ 20,000 for 2019-2020)	1,00,000
		By Balance c/d	1,200
	3,83,200		3,83,200

Dr. Expenditure	Amount (₹)	Cr. Income	Amount (₹)
To Staff Salary	42,500	By Hospital Receipts (Revenue)	2,55,200
To Honorarium to Doctors	2,00,000	By Subscriptions	1,11,000
To Repairs	9,000	By Excess of Expenditure over Income (Deficit)	24,550
To General Expenses	8,000
To Drugs consumed: Opening stock 21,000 Add: Purchases 80,000 Less: Closing stock 11,000	90,000
To Depreciation: Building 26,250 Ambulance 15,000	41,250
	3,90,750		3,90,750

Liabilities	Amount (₹)	Assets	Amount (₹)
Capital Fund 5,50,000 Add: Life Membership Fees 15,000 Less: Deficit 24,550	5,40,450	Hospital Equipments	1,52,000
Bank Loan	3,25,000	Ambulance 2,00,000 Less: Depreciation 15,000	1,85,000
Outstanding Bill for drugs	5,000	Building 5,25,000 Less: Depreciation 26,250	4,98,750
		Furniture	22,500
		Stock of drugs	11,000
		Cash in hand	1,200
	8,70,450		8,70,450