Page 115 - VIRANSH COACHING CLASSES

Additional Information :
1) Prepaid taxes ` 1,000
2) Outstanding Salary ` 8,000
3) Depreciate Land & Building by 10 % p.a. and Equipments by ` 12,000
4) Outstanding Subscription ` 20,000
5) 50 % of Life Membership should be capitalised.
Solution :
In the Books of Samarth Hospital, Sawantwadi.
Income and Expenditure Account
for the year ended 31 March 2018
st
Dr. Cr.
Expenditure Amount Amount Income Amount Amount
` ` ` `
To Medicines 50,000 By Subscription 90,000

Less : Unpaid Bill 9,000 41,000 Less : Previous year 4,000
To Salaries 52,000 (2016-17)

Less : O/s for previous year 15,000 86,000
(2016-17) 37,000 Add : O/s Subscription 20,000 1,06,000
Add : O/s (2017-18) 8,000 (2017-18)

To Taxes 7,200 45,000 By Life Membership 30,000
Less : Prepaid 1,000 Less : 50 % Capitalised 15,000 15,000

To Loss on Sale 6,200 By Visit fees 55,000
Of Furniture 5,000 By Deficit 3,200
(20,000 - 15,000) (Excess of Expenditure

To Depreciation on : over Income)
Land & Building 70,000

Equipment 12,000 82,000

1,79,200 1,79,200

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