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Accountancy · 2022 · 3 marks
CBSE 2022 · Region 3 · Set 2 · Q4
From the following information obtained from the books of Murlidhar Charitable IIospital, calculate the amount of medicines to be debited to the Income and Expenditure Account of the hospital for the year ended 31.3.2022. $\displaystyle 31.03.2021$ $\displaystyle 31.03.2022$ Particulars Amount Amount $\displaystyle 2$ $\displaystyle 2$ Stock of medicines $\displaystyle 1,70,000$ $\displaystyle 3,75,000$ Creditors for medicines $\displaystyle 5,40,000$ $\displaystyle 8,253,000$ During the year ₹ $\displaystyle 11,49,000$ were paid to the Creditors for medicines. Medicines of ₹ $\displaystyle 8,80,000$ were purchased in cash for emergency use.ORState with reason how the following items will be treated while preparing the 'Income and Expenditure Account and 'Balance Sheet' of a NotforProfit Organisation : (a) Sale of used sports material. (b) Life membership fees. (c) Government Grant for the construction of building.
OR
State with reason how the following items will be treated while preparing the 'Income and Expenditure Account and 'Balance Sheet' of a NotforProfit Organisation : (a) Sale of used sports material. (b) Life membership fees. (c) Government Grant for the construction of building.Marking-scheme solution
Dr Stock of Medicines Account Cr
Particulars Amount Particulars Amount
(₹) (₹)
To Balance b/d $\displaystyle 1,70,000$ By Income and Expenditure A/c $\displaystyle 15,59,000$
(Medicines consumed during
To Bank A/c $\displaystyle 3,30,000$
the year- Balancing figure)
$\displaystyle 1$
$\displaystyle 14,34,000$
To Creditors A/c
$\displaystyle 3,75,000$
By Balance c/d
$\displaystyle 19,34,000$
$\displaystyle 19,34,000$
Dr Creditors for Medicines Account Cr
Particulars Amount Particulars Amount
(₹) (₹)
To Bank A/c $\displaystyle 11,49,000$ By Balance b/d $\displaystyle 5,40,000$
By Stock of Medicine A/c
To Balance c/d $\displaystyle 8,25,000$
$\displaystyle 14,34,000$
(Credit purchase of medicine)
$\displaystyle 19,74,000$ $\displaystyle 19,74,000$
Alternatively :
₹
Closing Balance of Creditors $\displaystyle 8,25,000$
Add : Payment made to Creditors $\displaystyle 11,49,000$
$\displaystyle 19,74,000$
Less : Opening Balance of Creditors $\displaystyle 5,40,000$
Medicines Purchased on Credit $\displaystyle 14,34,000$
Add : Medicines Purchased for Cash $\displaystyle 3,30,000$
Total Medicines Purchased $\displaystyle 17,64,000$
Add : Opening Stock of Medicines $\displaystyle 1,70,000$
Amount of medicines available for use during the year $\displaystyle 19,34,000$
Less : Closing Stock $\displaystyle 3,75,000$
Medicines used during the year $\displaystyle 15,59,000$
Or
Q. State with reason how the…………………………
Ans.
(a)
Sale of used sports material : It is a regular feature with any sports club. Hence it
is shown as an income in the Income and Expenditure Account.
(b)
Life Membership Fees : Some members prefer to pay lump sum amount for
subscription instead of paying periodic subscription. Such amount is treated as
capital receipt and is credited directly to the capital/general fund. It is shown on
the liability side of the Balance Sheet.
(c)
Government Grant for the construction of building: Government grant received for
the construction of building is treated as a capital receipt and is shown on the
liability side of the Balance Sheet.
Q. C,F and S…………………………………
Practice Accounting for Not-for-Profit Organisation →All Accounting for Not-for-Profit Organisation questions
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CBSE Class 12 Accountancy past-paper question from the 2022board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.