Question

From the following Receipts and Payments Account of Bharati Vidyapeeth College, Kolhapur for the year ending 31st March, 2019 and additional information, Prepare Income and Expenditure Account for the year ended 31st March, 2019 and a Balance Sheet as on that date.

Dr.	Receipts and payment Account for the year ended 31st March, 2019		Cr.
Receipts	Amount ₹	Payments	Amount ₹
To Balance b/d:		By Salaries to:
Cash	12,000	Teaching Staff	15,00,000
Bank	2,00,000	Office Staff	8,55,000
To Interest	60,000	By Printing & Stationery	27,000
To Donation	7,00,000	By Books	88,000
To Tuition Fees	15,00,000	By Furniture (Purchased on 1-1-2019)	78,000
To Admission Fees	65,000	By Drama Expenses	90,000
To Term Fees	4,00,000	By Postage	7,000
To Drama Receipts	1.00,000	By Telephone Charges	6,000
To Rent from use of Hall	6,000	By Electricity	61,000
To Legacies (Capital)	60,000	By Magazines and Newspaper	6,500
		By Balance c/d :
		Cash	62,000
		Bank	3,23,000
	31,03,000		31,03,000

Additional information:

Particulars	01.04.2018	31.03.2019
Books	9,00,000	8,88,000
Furniture	3.26.000	3,00,000
Building Fund	8,27,000	?
Capital Fund	6,11,000	?

1. 60 % Donations are for Building Fund and Balance is to be treated as Revenue Income.
2. Outstanding Office Staff Salaries ₹ 70,000

Answer 1

Dr.	In the books of Bharati Vidyapeeth College, Kolhapur Income & Expenditure for the year ended 31st March, 2019				Cr.
Expenditure	Amount ₹	Amount ₹	Income	Amount ₹	Amount ₹
To Salaries to Teaching Staff		15.00.000	By Interest		60,000
To Salaries to office staff	8.55.000	9.25,000	By Donations	7,00,000	2,80,000
Add: Outstanding	70.000		Less : 60 % for Building	4,20,000
To Printing & Stationery		27.000	By Tuition fees		15,00,000
To Postage		7,000	By Admission fees		65,000
To Telephone Charges		6,000	By Term fees		4,00,000
To Electricity		61.000	By Drama Receipts	1.00,000	10.000
To Magazines & News Papers		6.000	Less : Expenses	90,000
To Depreciation on Books	1.00.000	2,04,000	By Rent from Hall		6.000
Furniture	1.04.000		By Deficit (Excess of Expenditure over Income)		4.15.000
		27,36,000			27,36,000

 

Dr.	In the books of Bharati Vidyapeeth College, Kolhapur Balance Sheet As on 31st March, 2019				Cr.
Liabilities	Amount ₹	Amount ₹	Assets	Amount ₹	Amount ₹
Capital Fund	6,11,000	2,56,000	Books	9,00,000	8,88,000
Add: Legacies	60,000		Add: Purchases	88,000
	6,71,000			9,88,000
Less: Deficit	4,15,000		Less: 10 % Depreciation	1,00,000
Building Fund	8,27,000		Furniture	3,26,000	3,00,000
Add: Donations	4,20,000	12,47,000	Add: Purchases	78,000
0/s Salaries to office staff		70,000		4,04,000
			Less: Depreciation	1,04,000
			Cash in Hand		62,000
			Cash at Bank		3,23,000
		15,73,000			15,73,000