Receipts and payments Account of Medical aid Society for the year ended 31st March 2019 is given below :

Additional Information
`{:(,"1st April",,"31st March",,,,"1st April",,"31st March"),(,"2018(Rs)",,"2019(Rs)",,,,"2018(Rs)",,"2019(Rs)"),("Subscriptions Due","5,000",,"10,000",,"Amount Due to medicine Supplier",,"80,000",,"1,20,000"),("Subscriptions Received in Advance","10,000",,"5,000",,"Equipments",,"2,10,000",,"3,00,000"),("Stock of Medicines","1,00,000",,"1,50,000",,"Building",,"4,00,000",,"3,80,000"):}`
Prepare Income and Expenditure Account for the year ended 31st March 2019 and Balance Sheet as at that date.

Answer

N/a

Explanation

2. Purchase of Medicines = Amount due to medicine suppliers (31,3,2019) +Payment for medicines- Amount due to medicine suppliers (1,4,2018)
=Rs 1,20,000 +Rs. 2,50,000- Rs 80,000 =Rs 2,90,000.
3.Medicines Consumed =Opening Stock +Purchase -Closing Stock
=Rs1,00,000 +Rs 2,90,000 (WN 2) -Rs 1,50,000 =Rs 2,40,000.
4. interest on investments received Rs 70,000 in 2018- 19 indicates that there were investments in the beginning of the accounting yeaR 2018-19 .The rate of interest is 7%
So, the value of inverstments `=100//7 xx Rs 70,000 =Rs 10,00,000.`
5. Government Grant is a specific grant for polio Eradication . Hence it is credited to polio Eradication Fund and expenses related to it are debited to this Fund.