Question

From the following Receipts and Payments Account of “Matsyodari Engineering College, Aurangabad” for the year ending on 31^st March, 2020 and additional informations, prepare Income and Expenditure Account for the year ending 31^st 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:

1. 50% Donations are for Building fund and the balance is to be treated a Revenue Income.
2. Outstanding subscription ₹5,300.
3. Life Membership fees are to be capitalised.

Answer 1

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
	10,77,000		Less: Depreciation	64,000
Add: Surplus	5,33,300		Furniture	3,19,000	3,00,000
Less: Building Fund	10,00,000		Add: Purchased	55,000
Add: Donation	2,50,000	12,50,000	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