Income and Expenditure Account
Expenditure Amount Income Amount
To Honorarium to Doctors A/ c
To Salary A/ c
To Sundry Expenses A/ c
To Medicine A/ c
To Depreciation on
Equipment A/ c
To Depreciation on Building
A/ c
To Surplus A/ c
2,00,000
5,50,000
10,000
5,80,000
1,20,000
40,000
1,30,000
By Donation A/ c
By Interest A/c
By Charity Show
Income 2,00,000
Expenses (20,000)
By Subscription A/c
2,90,000
1,40,000
1,80,000
10,20,000
16,30,000 16,30,000
Balance sheet on date 31.3.2013
Liabilities Amount Assets Amount
Trust Fund 33,90,000
(+) Surplus 1,30,000
Advance Subscription
Creditors for medicine
35,20,000
10,000
2,40,000
Investment
Subscription Outstanding
Medicine Stock
Building
20,00,000
20,000
3,00,000
7,60,000
Equipment
Cash/Bank
6,00,000
90,000
37,70,000 37,70,000
Working Notes:
Important Points;
By preparing these accounts we get missing information which may be a transaction
(complete the double entry of same) or a balance of that account. Complete accounting for
whatever information is available in the question. Then by balancing the account you will
get missing information as a balancing information.
Subscription Account
Particulars Amount Particulars Amount
To Opening Outstanding
To Income & Expenditure A/c
To Closing Balance (advance)
10,000
10,20,000
10,000
By Opening Advance
By Cash/Bank A/c
(Received)
By Closing outstanding
balance
20,000
10,00,000
20,000
10,40,000 10,40,000
Medicine A/ c
Particulars Amount Particulars Amount
To Opening Balance (Op.
Stock)
To Creditors A/c (Purchase)
2,00,000
6,80,000
By Income & Expenditure A/ c
(consumed)
By Closing Stock A/ c
5,80,000
3,00,000
8,80,000 8,80,000
Creditors For Medicine A/ c
Particulars Amount Particulars Amount
To Cash/Bank A/c (Payment)
To Closing balance c/f
6,00,000
2,40,000
By Opening Balance
By Purchase A/ c (bal. fig.)
1,60,000
6,80,000
8,40,000 8,40,000
Equipment A/ c
Particulars Amount Particulars Amount
To Opening Balance
To Cash/Bank A/c (Purchase)
4,20,000
3,00,000
By Depreciation A/c (bal. fig)
By Closing Balance
1,20,000
6,00,000
7,20,000 7,20,000
Building A/ c
Particulars Amount Particulars Amount
To Opening Balance
8,00,000
By Depreciation A/c (bal. fig)
By Closing Balance
40,000
7,60,000
8,00,000 8,00,000
Balance Sheet as on 31.03.2012
Liabilities Amount Assets Amount
Advance Subscription
Creditors For Medicine
Trust Fund (Balancing figure)
20,000
1,60,000
33,90,000
Cash/Bank
Investment**
Subscription Outstanding
Stock of Medicine
Equipment
Building
1,40,000
20,00,000
10,000
2,00,000
4,20,000
8,00,000
35,70,000 35,70,000
**Investment is calculated from interest Investment = 1,40,000 / 7 x 100 = 20,00,000