Practical Problem 14
SOLUTION:
In the books of Vivekanand Charitable Hospital, Latur
Income and Expenditure Account for the year ended 31st March, 2019 | |||||
Expenditure | Amount ₹ | Amount ₹ | Income | Amount ₹ | Amount₹ |
To Salary to Staff | 85,000 | By Subscription | 2,22,000 | ||
To Honorarium to Doctors | 4,00,000 | By Hospital Receipts | 5,10,400 | ||
To Repairs and Maintenance | 18,000 | By Deficit (Excess of expenditure over income) | 49,100 | ||
To General Expenses | 16,000 | ||||
To Depreciation | |||||
Building | 52,500 | ||||
Ambulance | 30,000 | 82,500 | |||
To Drugs Consumed | |||||
Opening Stock | 42,000 | ||||
Add: Purchases (2,00,000 – 40,000) | 1,60,000 | ||||
2,02,000 | |||||
Less: Closing stock | 22,000 | 1,80,000 | |||
7,81,500 | 7,81,500 | ||||
Balance Sheet as on 31st March, 2019 | |||||
Liabilities | Amount ₹ | Amount₹ | Assets | Amount ₹ | Amount ₹ |
Capital Fund | 11,00,000 | Building | 10,50,000 | ||
Add: Life Membership Fees (Capitalised) | 30,000 | Less: Depreciation | 52,500 | 9,97,500 | |
11,30,000 | Ambulance | 4,00,000 | |||
Less: Deficit | 49,100 | 10,80,900 | Less: Depreciation | 30,000 | 3,70,000 |
Outstanding Bill for Drugs (50,000 – 40,000) | 10,000 | Hospital Equipment | 3,04,000 | ||
Bank Loan | 6,50,000 | Closing stock of Drugs | 22,000 | ||
Furniture | 45,000 | ||||
Cash in Hand | 2,400 | ||||
17,40,900 | 17,40,900 | ||||
Working Notes :
(1) Purchase of drugs ₹ 2,00,000 includes ₹ 40,000 of 2017–18 and in the Balance Sheet of 2017–18, the outstanding bill of drugs is ₹ 50,000 given. So, ₹ 10,000 is still outstanding
(2) Consumption of drugs:
Opening stock (2017 – 18) | 42,000 |
Add: Purchase of drugs | 1,60,000 |
2,02,000 | |
Less: Closing stock of drugs | 22,000 |
Consumption of drugs | 1,80,000 |