**Calculation of Medicines Consumed during the year ended 31st March, 2018**

To calculate the amount of medicines consumed during the year ended 31st March, 2018, we need to consider the opening stock of medicines, purchases during the year, and the closing stock of medicines.

The formula to calculate the amount of medicines consumed is as follows:

Medicines Consumed = Opening Stock + Purchases - Closing Stock

1. **Opening Stock of Medicines**:
- The stock of medicines on 1st April, 2017, is given as Rs. 50,000.

2. **Purchases of Medicines during 2017-18**:
- The total purchases of medicines during the year 2017-18 were Rs. 1,20,000.

3. **Closing Stock of Medicines**:
- The stock of medicines on 31st March, 2018, is given as Rs. 25,000.

Using the formula mentioned above, we can calculate the amount of medicines consumed during the year:

Medicines Consumed = Opening Stock + Purchases - Closing Stock

Medicines Consumed = Rs. 50,000 + Rs. 1,20,000 - Rs. 25,000
Medicines Consumed = Rs. 1,45,000

Therefore, the amount of medicines consumed during the year ended 31st March, 2018, and debited to the Income and Expenditure Account is Rs. 1,45,000.

**Explanation:**

The amount of medicines consumed during the year is an important aspect for a charitable hospital as it directly affects the cost of providing medical services. By calculating the amount of medicines consumed, the hospital can assess the efficiency of its medical and inventory management.

The opening stock of medicines represents the quantity of medicines available at the beginning of the year. This stock is valued at Rs. 50,000.

During the year, the hospital purchased additional medicines worth Rs. 1,20,000. This includes medicines purchased from suppliers and any other acquisitions made during the year.

The closing stock of medicines represents the quantity of medicines remaining at the end of the year. This stock is valued at Rs. 25,000.

To determine the amount of medicines consumed, we subtract the closing stock from the sum of the opening stock and purchases. This gives us the total value of medicines utilized or consumed during the year.

In this case, the amount of medicines consumed is calculated as Rs. 1,45,000. This amount is debited to the Income and Expenditure Account, representing the cost of medicines used in providing healthcare services during the year.

By tracking the amount of medicines consumed, the hospital can evaluate its inventory management practices, identify any inefficiencies or wastage, and make informed decisions regarding the procurement and utilization of medicines in the future.