Bhavnagar University 2007 M.B.A Financial Accounting For Hospital Management - Question Paper

M.B.A. (HM) DEGREE EXAMINATION, MAY 2007
Financial Accounting For Hospital Management
Time : 3 hours Maximum : 100 marks
PART A — (5 ? eight = 40 marks)
ans any 5 ques..
All ques. carry equal marks.
1. Differentiate ranging from Trial balance and balance sheet.
2. How do you minimise the expenditure of hospitals?
3. Discuss the social cost benefit analysis of hospitals.
4. Why the accounts of hopitals are to be audited?
5. Explain the factors influencing investments by hospitals.
6. Define financial management. discuss its objectives.
7. Journalise the subsequent :
Rs.
Bought machinery 1,00,000
Bought goods 10,000
Sold goods to Giri 7,000
Received interest 6,000
Paid cash to Kannan Rs. 2,900 in full settlement
of his a/c Rs. 3,000
Deposited cash in to Bank 1,500
Received cash from Raj 8,000
Paid rent by Cheque 2,000
8. Mr. Annamalai closes his books on 30th June every year. The subsequent matters are to be considered while preparing final a/cs for the year ended 30.6.2006 :
(a) Goods costing Rs. 1,200 distributed as free samples. Sales for the period included Rs. 1,000 worth of goods
(cost price) taken by the proprietor for personal use, the invoice price of which was Rs. 1,250.
(b) Goods costing Rs. 4,000 was destroyed by fire but the insurance company admitted the claim for Rs. 2,500 only.
Pass necessary journal entries to provide the effect of the above adjustments.
PART B — (4 ? 15 = 60 marks)
ans any 4 ques..
9. Explain the accounting concepts and conventions.
10. From the subsequent particulars relating to Alagappa Charitable Hospital, perpare (a) Receipts and payments A/c
for the year ended 30.6.2006 and (b) balance sheet as on 30.6.2006.
Income and expenditure a/c for the year ended 30.6.2006
Expenditure Rs. Income Rs.
To Medicines used 29,980 By Subscriptions 56,000
" Honorarium to " Donations 9,500
doctors 12,000 " Interest on
" Salaries 27,500 investments
" Printing and @ 11% p.a. 11,000
" stationery 1,100 " Income from
" Electricity and water 475 film show
" Rent 6,000 proceeds 11,450
" Depreciation on Less :
furniture and fixtures 2,100 Expenses 780 10,670
" Depreciation on
equipment 3,250
" Excess of income over
expenditure 4,765
87,170 87,170
Additional info :
As on
Items 30.6.2005 30.6.2006
Subscriptions due 120 160
Subscription received in advance 64 100
Unpaid electricity and water bills 92 115
Stock of medicines 7820 9750
Estimated value of equipments 11,600 13,900
Furniture and fixtures
(cost less depreciation) 21,000 18,900
Land – 10,000
Interest accrued on investment
in 11% debentures costing
Rs. 1,02,500 3,750 3,750
(face value of 1,00,000)
Cash in hand 340 160
Cash at bank 9,000 ?
11. Dr. Lal commenced practice on first January, 2006. He prepared the subsequent receipts and payments account for the year 2006.
Receipts and payments account
Rs. Rs.
To Cash in hand 30,000 By Equipments 20,000
" Receipts from " Furniture 5,000
depreciation 29,000 " Drugs 10,000
" Visits 40,000 " Assistant's salary 6,000
" Miscelleneous receipts 1,000 " Rent 5,000
" Conveyance 3,000
" Stationery 600
" Lighting 700
" Journals 900
" Drawings 28,000
" Balance c/d 20,800
1,00,000 1,00,000
Addition info :
(a) Rs. 4,000 were still outstanding on a/c of Assistant's salary.
(b) Rs. 600 were receivable regarding visits.
(c) Closing stock of drugs was estimated at Rs. 2,000.
(d) Furniture and equipments are subject to depreciation @ 10% p.a.
(e) 50% of conveyance is for domestic purpose
You are needed to prepare the Income and expenditure a/c for the year ended 31.12.2006 and the balance sheet as on that date.
12. Dr. Arvind, a medical practitioner furnishes summary of cash book for the year ended 31.3.2006.
Rs. Rs.
To Balance b/d 12,970 By Rent of the clinic 3,000
" Consultation fees 9,000 " Cost of medicines 6,000
" Visiting fees 15,000 " Subscription 100
" Gifts from patients 4,000 " Surgical equipments 900
" Sale of medicine 13,500 " Salary to compounder 2,000
" Sales tax on sale " LIC premium 2,000
of medicines 500 " Gift to daughter 1,000
" Profit on sale of " Car purchased 30,000
securities 1,000 " Car expenses 3,000
" Interest on Govt. '' Sales tax on medicines 500
securities 800 '' Donation to a school 3,000
" Dividend (Gross) 1,580 '' Balance c/d 8,500
" Interest on post office
savings bank a/c 150
" Interest on fixed
deposits 1,500
60,000 60,000
Rate of depreciation on car is 15% and surgical equipments is 15%, of the car expenses attributed to personal use.
Compute his taxable professional income.
13. The subsequent is the trial balance of Mr. Anand as on 31.12.2006 :
Particulars Debit Credit
Rs. Rs.
Cash in hand 540 –
Cash at bank 2630 –
Purchases 40,675 –
Return inwards 680 –
Wages 10,480 –
Fuel and power 4,730 –
Carriage outwards 3,200 –
Carriage inwards 2,040 –
Opening stock 5,760 –
Premises 30,000 –
Lands 10,000 –
Machinery 20,000 –
Patents 7,500 –
Salaries 15,000 –
Sundry expenses 3,000 –
Insurance 600 –
Drawings 5,245 –
Debtors 14,500 –
Sales 98,780
Returns outwards 500
Anand's capital 71,000
Creditors 6,300
1,76,580 1,76,580
Adjustments :
(a) Closing stock as on 31.12.2006 Rs. 5,800
(b) Depreciation on machinery and patents 10% and 20% respectively
(c) Salary due for December 2006 was Rs. one ,500
(d) Rs. 2,000 spent on erection of a shed was included in wages a/c Rs. 2,000
(e) Provide 5% for doubtful debts
(f) Goods destroyed by fire Rs. 1,000 and insurance company admitted and paid the claim only Rs. 700.
Prepare the final accounts.
14. Explain the various sources of finance of a hospital.
15. Define zero base budget. explain its merits and demerits.

Earning:   Approval pending.