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NNS Hospitals Ltd . is a publicly owned company which owns a chain of hospitals. The Balance Sheet of NNS as of 3 1 /
NNS Hospitals Ltd is a publicly owned company which owns a chain of hospitals. The Balance Sheet of NNS as of is given below:
Liabilities and Owners Equity
Accounts Payable
Salaries Payable
Provision for Taxes
Bank Loan
Share Capital
Share Premium
Retained Earnings
TOTAL
Assets
Cash
Inventories of Medical Supplies
Accounts Receivable
Less: Allowance for Doubtful Debts
Advance Taxes Paid
Prepaid Insurance
Investments in Government Bonds
Land
Building
Less: Accumulated Depreciation
Equipment
Less: Accumulated Depreciation
TOTAL
Majority of the cash payments and receipts made during the year are given below:
Cash Receipts
Cash Payments
Total Cash Collected from Patients
Cash Paid for Staff Salaries
Interest Received on Government Bonds
Cash Paid for Accounts Payable
Sale of Equipment
Cash Paid for Utilities
Loan Repaid
Doctors Honorarium
Equipment Purchase
Advance Tax Paid
Additional Details:
NNS provides services to certain patients on a credit basis. During the current financial year, Rs worth of services was provided to such patients on a credit basis and Rs was collected from such patients. Due to poor financial condition of certain patients, Rs was writtenoff as bad debts in March Rs worth of previously writtenoff amounts was collected in January The firm wishes to maintain a balance of of yearend Accounts Receivable as an allowance for doubtful debts.
NNS purchases all inventory of medical supplies on credit. The total purchase in the current financial year amounted to The ending balance of inventory of medical supplies was
The interest on Bank Loan is accrued, but due to a computer glitch, could not be paid till th April The company had to pay a penalty of Rs along with the interest on th April for late payment of interest. The penalty becomes due in the year of default.
The equipment has a useful life of years and Building has a useful life of years. The equipment that was sold on was two years old at the beginning of the year and had a historical cost of Rs
Salaries for the last two weeks of March will be paid on th April Such salaries amounted to Rs Salaries payable for previous years were paid off in the current year.
The prepaid insurance is valid for another months starting from
Tax assessment for the year was completed in the current year and the tax was assessed to be Rs Shortfall refund if any, was paid received during the year Provision for taxes for the current year is of Profit before Tax.
Based on the above information, prepare the Balance Sheet, and Income Statement for the year ended on
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