Question

Following is the Balance Sheet as on 1.4.2009 and the Receipts and Payments Account for the year ending 31.3.2010 of Bright Students Junior College, Pune.

Balance Sheet as on  1.4.2009

Liabilities	Amount Rs	Assets	Amount Rs
Capital fund (Balancing figure)	13,18,000	Building Furniture Books Bank deposits Tuition fees receivable Cash in hand Cash at bank	10,00,000 1,20,000 60,000 1,00,000 10,000 19,000 9,000
	13,18,000		13,18,000

 Receipts and Payment Account 

For the year ended 31.03.2010

Receipts			Amount Rs	Payments		Amount Rs
To Balance b/d				By Salaries to teachers		1,80,000
Cash in hand			9,000	By Salaries to office staff		30,000
Cash at bank			19,000	By Books purchased on 1.1.2010		20,000
To Tuition fees				By Printing and stationary		41,000
2008-2009 :		10,000		By Office rent		10,000
2009-2010 :		1,70,000	1,80,000	By Repair to Jr. College building		24,000
To Fine collected			5,200	By Sports expenses		8,600
To Admission fees			20,000	By Annual gathering expenses		14,000
To Donations			1,00,000	By Furniture (Purchased on 1.1.2010)		80,000
To Interest on bank deposits			5,000	By Balance c/d
To Government grant (Revenue)			2,00,000	Cash in hand		2,600
				Cash at bank		1,28,000
			5,38,200			5,38,200

Additional information:

(1) For the current year (2009–2010) tuition fees receivable (outstanding) Rs 24,000.

(2) Donations are to be capitalized.

(3) Salary to teachers is outstanding Rs 12,000.

(4) Depreciate books @ 20% p. a. and furniture @ 10% p. a.

You are required to prepare:

(a) Income and Expenditure Account for the year ending 31.3.2010.

(b) Balance Sheet as on 31.3.2010

 

Answer 1

Bright Students junior college , pune

Income and Expenditure Account 

For the year ending march 31,2010

Expenditure			Amount (Rs)	Income		Amount (Rs)
Printing and Stationery			41,000	Tuition Fees	1,70,000
Office Rent			10,000	Add: Outstanding	24,000	1,94,000
Salary to Teacher		1,80,000		Fine Collected		5,200
Add: Outstanding		12,000	1,92,000	Interest on Bank Deposits		5,000
Repairs to Junior College Building			24,000	Government Grants		2,00,000
Sports Expenses			8,600	Admission Fees		20,000
Annual Gathering Expenses			14,000
Upkeep of Lawn
Depreciation:
Furniture		14,000
Library Books		13,000	27,000
Salaries to Staff			30,000
Surplus (Excess of Income over Expenditure)			77,600
			4,24,200			4,24,200

 Balance Sheet 

as on March 31,2010

Liabilities		Amount (Rs)	Assets		Amount (Rs)
Capital Fund			Furniture	1,20,000
Opening Balance	13,18,000		Add: Purchases	80,000
Add: Donation	1,00,000		Less: Depreciation	14,000	1,86,000
Add: Surplus	77,600	14,95,600	Building		10,00,000
Outstanding Salaries to teachers		12,000	Bank Deposits		1,00,000
			Library Books	60,000
			Add : Additional	20,000
			Less: Depreciation	13,000	67,000
			Tuition Fees Outstanding		24,000
			Cash in Hand		2,600
			Cash at Bank		1,28,000
		15,07,600			15,07,600

Working Notes:

WN1 Calculation of Depreciation on Books

\[\begin{array}{l}\text{Depreciation for whole year(from Apr. 01, 2009 to  Mar.} 31, 2010)= 60,000 \times\frac{20}{100}= Rs 12,000 \\ \text{Depreciation for 3 months(from Jan. 01, 2010 to Mar}. 01, 2010)= 20,000 \times\frac{20}{100}\times\frac{3}{12}= Rs 1,000 \\ \text{Total Depreciation charged on Books} = 12,000 + 1,000 = Rs 13,000\end{array}\]

WN2 Calculation of Depreciation on Furniture

\[\begin{array}{l}\text{Deprectaion for whole year(from Apr. 01, 2009 to Mar}. 31, 2010)= 1,20,000 \times\frac{10}{100}= Rs 12,000 \\ \text{Depreciation for 3 months(from Jan. 01, 2009 to Mar}. 31, 2010)= 80,000 \times\frac{10}{100}\times\frac{3}{12}= Rs 2,000 \\ \text{Total Depreciation charged on Furniture} = 12,000 + 2,000 = Rs 14,000\end{array}\]