Page 260 - ISCDEBK-XI

23.8 Double Entry Book Keeping—ISC XI

BALANCE SHEET (AN EXTRACT) as at 31st March, 2020
Liabilities ` Assets `
Subscription Received in Advance 800 Subscription Outstanding:
2018-19 500
2019-20 1,300 1,800
Illustration 6.
A summary of Receipts and Payments of Medical Aid Society for the year ended 31st March,
2020 is given below:
Dr. RECEIPTS & PAYMENTS ACCOUNT Cr.
Receipts ` Payments `
To Cash in Hand 7,000 By Payment for Medicines 30,000
To Subscriptions 50,000 By Honorarium to Doctors 10,000
To Donations 14,500 By Salaries 27,500
To Interest on Investments @ 7% p.a. 7,000 By Sundry Expenses 500
To Charity Show Proceeds 10,000 By Equipment Purchased 15,000
By Charity Show Expenses 1,000
By Cash in Hand 4,500
88,500 88,500
Donations are to be capitalised.
Additional Information:
1st April, 31st March,
2019 (`) 2020 (`)
Subscriptions Due 500 1,000
Subscriptions Received in Advance 1,000 500
Stock of Medicines 10,000 15,000
Amount Due to Medicine Suppliers 8,000 12,000
Value of Equipment 21,000 30,000
Value of Building 40,000 38,000
You are required to prepare the Income & Expenditure Account for the year ended
31st March, 2020 and the Balance Sheet as at that date.
Solution: Medical Aid Society
INCOME & EXPENDITURE ACCOUNT
Dr. for the year ended 31st March, 2020 Cr.
Expenditure ` Income `
To Medicines Consumed (WN 4) 29,000 By Subscriptions (WN 2) 51,000
To Honorarium to Doctors 10,000 By Interest on Investments 7,000
To Salaries 27,500 By Charity Show Proceeds 10,000
To Sundry Expenses 500 By Deficit—Excess of Expenditure over Income 8,000
To Charity Show Expenses 1,000
To Depreciation:
On Equipment (WN 6) 6,000
On Building 2,000
76,000 76,000