Summary of Receipts and Payments of Urban Health Care Society for the year ended 31st March, 2026 is as follows: Receipts: Opening Cash at Bank -…

CA Foundation · Accounting · PYQS · May 2026
Summary of Receipts and Payments of Urban Health Care Society for the year ended 31st March, 2026 is as follows: Receipts: Opening Cash at Bank - 24,000, Subscription - 1,50,000, Donation - 45,000 (raised for meeting revenue expenditure), Interest on Investments @9% p.a.27,000/-, Health check up Camp collections - 37,500. Payments: Payment for Medicine Supply - 90,000, Honorarium to Doctors - 30,000, Salaries - 84,000, Miscellaneous Expenses - 3,000, Equipment Purchased - 45,000, Health check -up Camp Expenses - 4,500. Additional Information: 1 st April, 2025 (₹) 31 st March, 2026 (₹) Subscription due 4,500 6,600 Subscription received in advance 3,600 2,100 Stock of medicines 30,000 45,000 Amount due for medicine supply 27,000 39,000 Value of Equipment 63,000 90,000 Value of Building 1,50,000 1,44,000 You are required to prepare the Income and Expenditure Account for the year ended 31st March, 2026. All workings should form part of the answer.

Suggested Answer and Working Notes:

Income and Expenditure Account for the year ended 31st March, 2026 Expenditure ₹ Income ₹ To Medicine consumed (WN.3) 87,000 By Subscription (WN - 1) 1,53,600 To Honorarium to doctors 30,000 By Donation 45,000 To Salaries 84,000 By Interest on investments 27,000 To Miscellaneous expenses 3,000 By Profit on Health Checkup Camp: To Depreciation on Camp collections 37,500 Equipment (WN - 4) 18,000 Less: Camp expenses (4, 500) Building 6,000 33,000 24,000 To Surplus -excess of income over expenditure 30,600 2,58,600 2,58,600 Working Notes: 1. Subscription for the year ended 31st March, 2026: Particulars ₹ Subscription received during the year 1,50,000 Less: Subscription due on 1.4.2025 4,500 Less: Subscription received in advance on 31.3.2026 2,100 (6, 600) 1,43,400 Add: Subscription due on 31.3.2026 6,600 Add: Subscription received in advance on 1.4.2025 3,600 10,200 1,53,600 2. Purchase of medicine: Particulars ₹ Payment for medicine supply 90,000 Less: Amounts due for medicine supply on 1.4.2025 (27, 000) 63,000 Add: Amounts due for medicine supply on 31.3.2026 39,000 1,02,000 3. Medicine consumed: Particulars ₹ Stock of medicine on 1.4.2025 30,000 Add: Purchase of medicine during the year (WN - 2) 1,02,000 1,32,000 Less: Stock of medicine on 31.3.2026 (45, 000) 87,000 4. Depreciation on equipment: Particulars ₹ Value of equipment on 1.4.2025 63,000 Add: Purchase of equipment during the year 45,000 1,08,000 Less: Value of equipment on 31.3.2026 (90, 000) Depreciation on equipment for the year 18,000

Topics: Financial Statements of Not-for-Profit Organisations

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