Ipf account under charitable organisation

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 June 2012 I am doing accounting in a hospital run by charitable trust. As per BPT act, trust has to keep aside 2% of their total patient billing to IPF account which is to be utilised on treatment of indigent and weaker section patients.
e.g. if I treat regular patients for cash Rs. 2000 and Indigent patients free Rs. 500, then I will transfer Rs. 400 to indigent patient fund.
the accounting entries will be :
1. Free patient A/c Dr 500
Cash A/c Dr 2000
To Revenue A/c 2500
2. Ipf Payable A/c Dr 500
To Free patient a/c 500
3. Indigent patient exps dr. 400
To IPF Payable ac 400
Thus if I have opening credit balance of Rs.1000 in IPF Payable a/c, then closing balance will be 1000+400-500 = 900 Cr
Please tell me whether I am doing correct accounting or not. Our senior is asking us not to show free treated patient in Income and expenditure a/c and show only 2000 as revenue. Please guide me on this as early as possible from accounting principal point of view.

Querist : Anonymous

Querist : Anonymous (Querist)

19 June 2012 please give the reply

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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01 August 2024 https://docs.google.com/document/d/1IUJM1Gz8fgpa5wbVpKBh_gfpwKKgfFzWCVnBAdGtJeQ/edit?usp=sharing

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