(Charitable Hospital) Following information has been provided by "Vivekanand Charitable Hospital" Latur. You are required to prepared Income and Expenditure Account for the year ending on 31.03.2019 and Balance Sheet as on that date.

14. (Charitable Hospital) Following information has been provided by "Vivekanand Charitable Hospital" Latur. You are required to prepared Income and Expenditure Account for the year ending on 31.03.2019 and Balance Sheet as on that date.

Balance Sheet as on 01.04.2018

Liabilities	Amount	Amount	Assets	Amount	Amount
Capital Fund		11,00,000	Building		10,50,000
Bank Loan		6,50,000	Ambulance		4,00,000
Outstanding Bill for Drugs		50,000	Stock of Drugs		42,000
			Hospital Equipment		3,04,000
			Cash in Hand		4,000
		18,00,000			18,00,000

Receipts and Payments Account for the year ending 31.03.2019

Dr.                                                                                                                                                                           Cr.

Receipts	Amount	Amount	Payments	Amount	Amount
To Balance b/d		4,000	By Purchase of Drugs (Includes 40,000 for 2017-18)		2,00,000
To Subscription		2,22,000	By Salary to Staff		85,000
To Life Membership Fees		30,000	By Honorarium to Doctors		4,00,000
To Hospital Receipts (Revenue)		5,10,400	By Repairs and Maintenance		18,000
			By Furniture		45,000
			By General Expenses		16,000
			By Balane c/d		2,400
		7,66,400			7,66,400

Adjustments:

1. On 31.03.2019 Stock of Drugs was valued at ₹22,000.
2. Depreciation on Building at 5% p.a. and on Ambulance ₹30,000.

3. Life Membership Fees are to be capitalized.

Solution:

In the Books of Vivekanand Charitable Hospital" Latur.

Income and Expenditure Account for the year ending 31.03.2019.

Dr.                                                                                                                                   Cr.

Expenditure	Amount	Amount	Income	Amount	Amount
To Drugs Opening Stock	42,000		By Subscription		2,22,000
(+) Purchased	1,60,000		By Hospital Receipts		5,10,400
(-) Closing Stock	22,000	1,80,000
To Salary to Staff		85,000
To Honorarium to Doctors		4,00,000
To repairs and maintenance		18,000
To General Expenses		16,000
To Depreciation on
Building	52,500
Ambulance	30,000	82,500
			By Deficit		49,100
		7,81,500			7,81,500

Balance Sheet as on 31.03.2019

Cr.                                                                                                          Dr.

Liabilities	Amount	Amount	Assets	Amount	Amount
Capital Fund	11,00,000		Building	10,50,000
(+) Life Membership	30,000		(-) Depreciation	52,500	9,97,500
(-) Deficit	49,100	10,80,900	Ambulance	4,00,000
			(-) Depreciation	30,000	3,70,000
Bank Loan		6,50,000	Hospital Equipements		3,04,000
Outstanding Bill for Drugs (50,000 - 40,000)		10,000	Cash in Hand		2,400
			Furniture		45,000
			Closing Stock of Drugs		22,000
		17,40,900			17,40,900