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Question
From the following Receipts and Payments Account of “Matsyodari Engineering College, Aurangabad” for the year ending on 31st March, 2020 and additional informations, prepare Income and Expenditure Account for the year ending 31st March, 2020 and Balance Sheet as on that date:
| Dr. | Receipts and payment Account for the year ended 31st March, 2020 |
Cr. | |
| Receipts | Amount ₹ | Payments | Amount ₹ |
| To Balance b/d | By Salaries to Teaching Staff |
10,00,000 | |
| Cash in hand | 8,000 | By Electricity charges | 50,000 |
| Cash at bank | 1,00,000 | By Books | 64,000 |
| To Interest | 50,000 | By Furniture | 55,000 |
| To Subscription | 30,000 | By Stationary | 24,000 |
| To Life Membership Fees | 40,000 | By Fixed Deposit | 7,00,000 |
| To Donation | 5,00,000 | By Balance c/d | |
| To Tuition fees | 11,50,000 | Cash in hand | 20,000 |
| To Term fees | 2,00,000 | Cash at bank | 2,25,000 |
| To Sundry Receipts | 10,000 | ||
| To Admission Fees (Revenue) | 50,000 | ||
| 21,38,000 | 21,38,000 | ||
Additional information:
| Particulars | 01.04.2019 | 31.03.2020 |
| Books | 7,00,000 | 7,00,000 |
| Furniture | 3,19,000 | 3,00,000 |
| Building fund | 10,00,000 | ? |
| Fixed Deposit | 9,10,000 | ? |
| Capital Fund | 10,37,000 | ? |
Adjustment:
- 50% Donations are for Building fund and the balance is to be treated a Revenue Income.
- Outstanding subscription ₹ 5,300.
- Life Membership fees are to be capitalised.
Solution
| Dr. | In the books of Matsyodari Engineering College, Aurangabad Income & Expenditure for the year ended 31st March, 2020 |
Cr. | |||
| Expenditure | Amount ₹ | Amount ₹ | Income | Amount ₹ | Amount ₹ |
| To Salaries to Teaching Staff | 10,00,000 | By Interest | 50,000 | ||
| To Electricity charges | 50,000 | By subscription | 30,000 | 35,300 | |
| To Stationary | 24,000 | Add: Outstanding | 5,300 | ||
| To Depreciation on : | By Donation | 2,50,000 | |||
| Books | 64,000 | 1,38,000 | By Tuition fees | 11,50,000 | |
| Furniture | 74,000 | By Term fees | 2,00,000 | ||
| To Surplus (Excess of Income over Expenditure) | 5,33,300 | By Sundry Receipt | 10,000 | ||
| By Admission Fees (Revenue) | 50,000 | ||||
| 17,45,300 | 17,45,300 | ||||
| Dr. | In the books of Matsyodari Engineering College, Aurangabad Balance Sheet As on 31st March, 2020 |
Cr. | |||
| Liabilities | Amount ₹ | Amount ₹ | Assets | Amount ₹ | Amount ₹ |
| Capital Fund | 10,37,000 | 16,10,300 | Books | 7,00,000 | 7,00,000 |
| Add: Life Membership fess | 40,000 | Add: Purchased | 64,000 | ||
| Less: | Less: Depreciation | 64,000 | |||
| Building Fund | 10,00,000 | 12,50,000 | Furniture | 3,19,000 | 3,00,000 |
| Add: Donation | 2,50,000 | Add: Purchased | 55,000 | ||
| Less: Depreciation | 74,000 | ||||
| Fixed Deposit | 9,10,000 | 16,10,000 | |||
| Add: Addition | 7,00,000 | ||||
| Cash in hand | 20,000 | ||||
| Cash at bank | 2,25,000 | ||||
| Outstanding subscription | 5,300 | ||||
| 28,60,300 | 28,60,300 | ||||
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| 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 |
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- 60 % Donations are for Building Fund and Balance is to be treated as Revenue Income.
- Outstanding Office Staff Salaries ₹ 70,000
