Question

Symbiosys school, Pune showed the following position on 31st March, 2018.

Balance Sheet as on 31st March 2018
Liabilities	Amount ₹	Assets	Amount ₹
Capital Fund	6,80,000	Cash in Hand	5,000
Entrance fees	20,000	Cash at Bank	8,000
		Laboratory	15,000
		Building	6,00,000
		Furniture	40,000
		Books	22,000
		Tuition fees Receivable	10,000
	7,00,000		7,00,000

 

Dr.	Receipts and Payments Account for the year ending 31st March 2019						Cr.
Receipts		Amount ₹	Amount ₹	Payments	Amount ₹	Amount ₹
To Balance b/d				By Salaries to Teachers		1,80,000
Cash		5,000	13,000	By Salaries to Office staff		30,000
Bank		8,000		By Books (Purchased on 1-1-2019)		15,000
To Tuition Fees				By Printing & Stationery		5,000
2017 - 18		8,000	1,08,000	By Annual Gathering Exp		10,000
2018 - 19		1,00,000		By Office Rent		16,000
To Fine Collected			2,000	By Repairs		15,000
To Admission fees			10,000	By Sports Exp.		5,000
To Term fees			7,000	By Furniture (Purchased on 1-7-2018)		50,000
To Donations to for Library			1,000	By Balance c/d
To Interest on Bank Deposits			5,000	Cash	8,000	20,000
To Govt. Grants (Revenue)			2,00,000	Bank	12,000
			3,46,000			3,46,000

Additional Information:

1. Tuition fees are outstanding for current year ₹ 5,000.
2. Salary to teachers is outstanding ₹ 15,000
3. Rent paid in advance is ₹ 3,000
4. Depreciation on Books @ 15 % p.a. and 10 % on Furniture.

You are required to prepare Income & Expenditure Account for the year ended 31st March, 2019 and a balance sheet as on that date.

Answer 1

Dr.	In the books of Symbiosys School, Pune Income and Expenditure Account for the year ended 31st March, 2019						Cr.
Expenditure		Amount ₹	Amount ₹	Income	Amount ₹	Amount ₹
To Salaries to teachers		1,80,000	1,95,000	By Tuition Fees	1,00,000	1,05,000
Add: Outstanding Salaries		15,000		Add: Outstanding Tuition Fees	5,000
To Salaries to Office Staff			30,000	By Fine Collected		2,000
To Printing and Stationery			5,000	By Admission fees		10,000
To Annual Gathering Expenses			10,000	By Term fees		7,000
To Office Rent		16,000	13,000	By Interest on Bank Deposits		5,000
Less: Prepaid Rent		3,000		By Govt. Grants		2,00,000
To Repairs			15,000
To Sports Expenses			5,000
To Depreciation on
Furniture		7,750	11,613
Books		3,863
To Surplus (Excess of income over expenditure)			44,387
			3,29,000			3,29,000

 

Balance Sheet as on 31st March, 2020
Liabilities	Amount ₹	Amount ₹	Assets	Amount ₹	Amount ₹
Capital Fund	6,80,000	7,24,387	Cash in Hand		8,000
Add: Surplus	44,387		Cash in Bank		12,000
Entrance fees		20,000	Tuition fees Receivable
Donations for Library		1,000	2017 - 18	2,000	7,000
Outstanding Salary of teacher		15,000	2018 - 19	5,000
			Prepaid Rent		3,000
			Laboratory		15,000
			Building		6,00,000
			Furniture	40,000	82,250
			Add: Furniture Purchased	50,000
				90,000
			Less: 10 % Depreciation	7,750
			Books	22,000	33,137
			Add: Purchases	15,000
				37,000
			Less: 15 % Depreciation	3,863
		7,60,387			7,60,387

Working Notes :

• Calculation of Depreciation on Furniture:

a) 10 % Depreciation on ₹ 40,000   = ₹ 4,000

b) 10 % Depreciation on ₹ 50,000 for 9 months - 

`50,000xx10/100xx9/12` = 3,750

∴ Total Depreciation = 4,000 - 3,750 = 7,750

• Calculation of Depreciation on Books:

a) 15 % Depreciation on ₹ 22,000 = ₹ 3,300

b) 15 % Depreciation on ₹ 15,000 for 3 months 

`15,000xx15/100xx3/12` = 563

∴ Total Depreciation = 3,300 + 563 = 3,863