P.1-4 Hussain and Company started medical services enterprise and appointed two doctors. The following transactions took place during April, 2020. 01. Hired a building on rent at monthly rent of Rs. 50,000. 02. Brought cash of Rs. 600,000 by Mr. Hussai

Below, you'll find the necessary accounting documentation for Hussain and Company's medical services enterprise as per the transactions provided for April 2020.

### 1) General Journal

| Date       | Account Title                  | Debit (Rs.) | Credit (Rs.) |
|------------|-------------------------------|--------------|---------------|
| 2020-04-01 | Rent Expense                  | 50,000       |               |
|            | Cash                          |              | 50,000        |
| 2020-04-02 | Cash                          | 600,000      |               |
|            | Owner's Equity                |              | 600,000       |
| 2020-04-03 | Rent Expense                  | 50,000       |               |
|            | Cash                          |              | 50,000        |
| 2020-04-04 | Office Furniture              | 180,000      |               |
|            | Accounts Payable              |              | 180,000       |
| 2020-04-06 | Medical Supplies              | 18,000       |               |
|            | Cash                          |              | 18,000        |
| 2020-04-07 | Cash                          | 18,000       |               |
|            | Service Revenue               |              | 18,000        |
| 2020-04-08 | Medical Supplies              | 18,000       |               |
|            | Cash                          |              | 18,000        |
| 2020-04-10 | Utility Expense               | 12,000       |               |
|            | Cash                          |              | 12,000        |
| 2020-04-12 | Cash                          | 22,000       |               |
|            | Service Revenue               |              | 22,000        |
| 2020-04-15 | Medical Supplies Expense       | 8,000        |               |
|            | Medical Supplies              |              | 8,000         |
| 2020-04-18 | Owner's Drawings              | 20,000       |               |
|            | Cash                          |              | 20,000        |
| 2020-04-21 | Cash                          | 30,000       |               |
|            | Service Revenue               |              | 30,000        |
| 2020-04-23 | Salary Expense                | 25,000       |               |
|            | Cash                          |              | 25,000        |
| 2020-04-25 | Cash                          | 30,000       |               |
|            | Service Revenue               |              | 30,000        |
| 2020-04-27 | Utility Expense               | 16,000       |               |
|            | Cash                          |              | 16,000        |
| 2020-04-28 | Medical Supplies Expense       | 6,000        |               |
|            | Medical Supplies              |              | 6,000         |
| 2020-04-30 | Salary Expense                | 90,000       |               |
|            | Cash                          |              | 90,000        |
| 2020-04-30 | Cash                          | 45,000       |               |
|            | Service Revenue               |              | 45,000        |

### 2) Ledger Accounts

**Cash Account**

| Date       | Details                  | Debit (Rs.) | Credit (Rs.) | Balance (Rs.) |
|------------|--------------------------|--------------|---------------|----------------|
| 2020-04-02 | Owner's Equity          | 600,000      |               | 600,000        |
| 2020-04-03 | Rent Expense             |              | 50,000        | 550,000        |
| 2020-04-03 | Rent Expense             |              | 50,000        | 500,000        |
| 2020-04-06 | Medical Supplies         | 18,000       |               | 482,000        |
| 2020-04-07 | Service Revenue          | 18,000       |               | 500,000        |
| 2020-04-08 | Medical Supplies         | 18,000       |               | 482,000        |
| 2020-04-10 | Utility Expense          |              | 12,000        | 470,000        |
| 2020-04-12 | Service Revenue          | 22,000       |               | 492,000        |
| 2020-04-18 | Owner's Drawings         |              | 20,000        | 472,000        |
| 2020-04-21 | Service Revenue          | 30,000       |               | 502,000        |
| 2020-04-23 | Salary Expense           |              | 25,000        | 477,000        |
| 2020-04-25 | Service Revenue          | 30,000       |               | 507,000        |
| 2020-04-27 | Utility Expense          |              | 16,000        | 491,000        |
| 2020-04-30 | Salary Expense           |              | 90,000        | 401,000        |
| 2020-04-30 | Service Revenue          | 45,000       |               | 446,000        |

**Accounts Payable**

| Date       | Details                  | Debit (Rs.) | Credit (Rs.) | Balance (Rs.) |
|------------|--------------------------|--------------|---------------|----------------|
| 2020-04-04 | Office Furniture         |              | 180,000       | 180,000        |

**Office Furniture**

| Date       | Details                  | Debit (Rs.) | Credit (Rs.) | Balance (Rs.) |
|------------|--------------------------|--------------|---------------|----------------|
| 2020-04-04 | Purchased               | 180,000      |               | 180,000        |

**Medical Supplies**

| Date       | Details                  | Debit (Rs.) | Credit (Rs.) | Balance (Rs.) |
|------------|--------------------------|--------------|---------------|----------------|
| 2020-04-06 | Purchase                | 18,000       |               | 18,000         |
| 2020-04-08 | Purchase                | 18,000       |               | 36,000         |
| 2020-04-15 | Consumption             |              | 8,000         | 28,000         |
| 2020-04-28 | Consumption             |              | 6,000         | 22,000         |

**Service Revenue**

| Date       | Details                  | Debit (Rs.) | Credit (Rs.) | Balance (Rs.) |
|------------|--------------------------|--------------|---------------|----------------|
| 2020-04-07 | Service Rendered         |              | 18,000        | 18,000         |
| 2020-04-12 | Service Rendered         |              | 22,000        | 40,000         |
| 2020-04-21 | Service Rendered         |              | 30,000        | 70,000         |
| 2020-04-25 | Service Rendered         |              | 30,000        | 100,000        |
| 2020-04-30 | Service Rendered         |              | 45,000        | 145,000        |

**Rent Expense**

| Date       | Details                  | Debit (Rs.) | Credit (Rs.) | Balance (Rs.) |
|------------|--------------------------|--------------|---------------|----------------|
| 2020-04-01 | Rent for April           | 50,000       |               | 50,000         |
| 2020-04-03 | Rent for April           | 50,000       |               | 100,000        |

**Utility Expense**

| Date       | Details                  | Debit (Rs.) | Credit (Rs.) | Balance (Rs.) |
|------------|--------------------------|--------------|---------------|----------------|
| 2020-04-10 | Utility Paid             | 12,000       |               | 12,000         |
| 2020-04-27 | Utility Paid             | 16,000       |               | 28,000         |

**Owner's Equity**

| Date       | Details                  | Debit (Rs.) | Credit (Rs.) | Balance (Rs.) |
|------------|--------------------------|--------------|---------------|----------------|
| 2020-04-02 | Initial Capital Invested  |              | 600,000       | 600,000        |

**Owner’s Drawings**

| Date       | Details                  | Debit (Rs.) | Credit (Rs.) | Balance (Rs.) |
|------------|--------------------------|--------------|---------------|----------------|
| 2020-04-18 | Withdrawal               | 20,000       |               | 20,000         |

### 3) Trial Balance as of April 30, 2020

| Account                  | Debit (Rs.) | Credit (Rs.) |
|-------------------------|--------------|---------------|
| Cash                    | 446,000      |                |
| Accounts Payable        |               | 180,000        |
| Office Furniture        | 180,000      |                |
| Medical Supplies        | 22,000       |                |
| Service Revenue         |               | 145,000        |
| Rent Expense            | 100,000      |                |
| Utility Expense         | 28,000       |                |
| Salary Expense          | 115,000      |                |
| Owner's Equity          |               | 600,000        |
| Owner's Drawings        | 20,000       |                |
|-------------------------|--------------|---------------|
| **Total**              | **911,000**  | **911,000**    |

### 4) Financial Statements

**Income Statement for April 2020**

| Description                | Amount (Rs.) |
|----------------------------|--------------|
| Service Revenue            | 145,000      |
| Less: Rent Expense         | 100,000      |
| Less: Utility Expense      | 28,000       |
| Less: Salary Expense       | 115,000      |
| Less: Medical Supplies Expense | 14,000    |
| **Net Income**            | **-112,000** |

**Statement of Owner's Equity for April 2020**

| Description                | Amount (Rs.) |
|----------------------------|--------------|
| Opening Balance            | 600,000      |
| Add: Net Income            | -112,000     |
| Less: Drawings             | 20,000       |
| **Ending Balance**         | **468,000**  |

**Balance Sheet as of April 30, 2020**

| Assets                     | Amount (Rs.) |
|---------------------------|--------------|
| Cash                      | 446,000      |
| Office Furniture          | 180,000      |
| Medical Supplies          | 22,000       |
| **Total Assets**         | **648,000**  |

| Liabilities and Owner's Equity | Amount (Rs.) |
|---------------------------------|--------------|
| Accounts Payable                | 180,000      |
| **Owner's Equity**              | 468,000      |
| **Total Liabilities and Equity**| **648,000**  |

**Cash Flow Statement for April 2020**

| Description                  | Amount (Rs.) |
|------------------------------|--------------|
| Cash Flows from Operating Activities:   |
| Cash Received from Patients   | 145,000      |
| Cash Paid for Rent         | (100,000)    |
| Cash Paid for Utilities     | (28,000)     |
| Cash Paid for Salaries      | (115,000)    |
| Cash Paid for Medical Supplies | (36,000)    |
| **Net Cash Flow from Operating Activities** | **-134,000** |

| Beginning Cash Balance           | 600,000      |
| Add: Net Cash Flow from Operations | -134,000    |
| **Ending Cash Balance**         | **466,000**  |

### 5) Performance Evaluation

- **Net Income**: The company ended up with a net loss of Rs. 112,000 for the month.
- **Owner's Equity**: The owner's equity decreased from Rs. 600,000 to Rs. 468,000.
- **Cash Position**: There was a significant amount of cash available at Rs. 446,000 but ended the month with a decrease in cash flow.

**Conclusion**: The performance of Hussain and Company was not profitable in the month of April 2020. The company incurred a net loss and the owner's equity was negatively impacted. However, it has significant cash reserves, and renovations or improvements may be necessary to align expenses with revenues. A strategic review and cost analysis are recommended before making any decisions related to continuation or adjustments in operations.