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Accounts query

NAMAN SINGLA (C.A.) (37 Points)

23 February 2012

I have a query for accounting of medical tourism business (arranging Hospital (doctors) etc for foreign patients)

One of our client is carrying on thsi business. Suppose Hospital issued a bill of Rs.3 lakhs to patient and patient paid total Rs. 5 lakhs to our client through bank.

Client then transferred Rs.3 lakhs to Hospital for treatment and Rs. 1 lakh to a referral doctor in Patients country, and remaining 1 lakh is his income for his service.

What should be the accounting treatment for our client and for how much amount bill is to be issued ?

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3 Replies

Giridhar S Karandikar (Team Lead) (7548 Points)
Replied 24 February 2012

IN the books of the hospital the entry would be as follows:

Client A/c Dr 3,00,000

To Income Account 3,00,000

In the books of the Client Entry would be as follows:

Bank A/c Dr 50,00,000

To Hopsital A/c 3,00,000

To- Referral Doc’s Fees 1,00,000

To- Income account 1,00,000

thne after that:

Hospital Dr 3,00,000

Referral Doc Dr 1,00,000

To Bank 4,00,000

Bill of Rs. 5,00,000 should be raised by the client. Bill of Rs. 2,00,000 should be raised by the Hospital on the client.

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NAMAN SINGLA (C.A.) (37 Points)
Replied 27 February 2012

First of all Thank you Giridhar,

If client will issue a bill of Rs. 5 lakhs then he has to charge service tax on Rs.5 lakhs.

If hospital issues a bill for its service of Rs.3 lakhs directly to patient then there is no service tax, so issuing a bill of Rs. 5 Lakhs will increase cost to patient.

So plz clear

Banks Banking Portal (Banks in India) (22 Points)
Replied 29 February 2012

Totally 5laks issued from banks to client.that patient treatment is 3laks remaining amount 1 laks gave to doctor and 1laks to patient service this amount goes to client.I got one decent site for finance to banks you can visit this

https://banksindia.net