From the following Balance Sheet and Receipts and Payments A/c of Vidya Mandir High School, Alibag. Prepare Income and Expenditure Account for the year ended 31st March 2008 and Balance Sheet as on that date
| Balance Sheet as on 1st April 2007 | |||
| Liabilities | Amount (Rs) | Assets | Amount (Rs) |
| Entrance Fees | 6,000 | Furniture | 16,800 |
| Capital Fund | 1,03,800 | Laboratory | 20,000 |
| Library | 25,000 | ||
| Investment | 40,000 | ||
| Cash in hand | 1,000 | ||
| Cash at bank | 3,000 | ||
| Outstanding Tuition Fees | 4,000 | ||
| 1,09,800 | 1,09,800 | ||
| Receipts and Payments Account for the year ended 31st March 2008 | |||
| Receipts | Amount (Rs) | Payments | Amount (Rs) |
| To Balance b/d | By Furniture Purchased | 5,400 | |
| Cash in hand | 1,000 | By Salaries | 60,000 |
| Cash at bank | 3,000 | By Rent | 28,000 |
| To Tuition Fees | 80,000 | By Sundry Expenses | 15,200 |
| To Term Fees | 26,200 | By Annual Gathering Expenses | 11,300 |
| To Government Grant | 16,000 | By Insurance | 4,000 |
| To Donation of Library | 30,000 | By Closing Balance | |
| To Interest on Investment | 2,000 | Cash at bank | 34,300 |
| 1,58,200 | 1,58,200 | ||
Adjustments:
1. Tuition fees still receivable are Rs. 10,000.
2. Salaries still payable are Rs. 30,000
3. An insurance premium is paid for one year ending 30.9.2008.
4. Rent paid in advance Rs. 4,000.
5. Depreciate furniture and library at 10%.
Depreciation to be charged on the closing balances of the assets.
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Solution
|
In the books of Vidya Mandir High School Income and Expenditure Account for the year ending March 31, 2008 |
|||
| Dr. | Cr. | ||
| Expenditure | Amount (Rs) | Income | Amount (Rs) |
| Annual Gathering Expenses | 11,300 | Tuition Fees 80000 | |
| Sundry Expenses | 15,200 | Less: O/s (2007) 4,000 | |
| Rent 28000 | Add: O/s (2008) 10,000 | 86,000 | |
| Less: Prep. Rent 4,000 | 24,000 | Term Fees | 26,200 |
| Insurance 4,000 | Government Grant | 16,000 | |
| Less: Prep. Ins. 2,000 | 2,000 | Interest on Investment | 2,000 |
| Salaries 60,000 | Deficit (Excess of Exp. over Inc.) | 17,020 | |
| Add: O/s 30,000 | 90,000 | ||
| Depreciation: | |||
| Furniture 2,220 | |||
| Library 2,500 | 4,720 | ||
| 1,47,220 | 1,47,220 | ||
| Balance Sheet as on March 31, 2008 | |||
| Liabilities | Amount (Rs) | Assets | Amount (Rs) |
| Capital Fund | Furniture 16,800 | ||
| Opening Balance 1,03,800 | Add: Additions 5,400 | ||
| Less: Deficit 17,020 | 86,780 | Less: Depreciation 2,220 | 19,980 |
| Entrance Fees | 6,000 | Outstanding Tuition Fees | 10,000 |
| Donation for Library | 30,000 | Prepaid Insurance | 2,000 |
| Salaries Outstanding | 30,000 | Prepaid Rent | 4,000 |
| Library 25,000 | |||
| Less: Depreciation 2,500 | 22,500 | ||
| Investment | 40,000 | ||
| Laboratory | 20,000 | ||
| Cash at Bank | 34,300 | ||
| 1,52,780 | 1,52,780 | ||
Working Notes:
WN1 Calculation of Depreciation
Depreciation on Furniture = (16,800 + 5,400) ×10/100 = Rs 2,220
Depreciation on Library = 25,000 × 10/100 = Rs 2,500
Is there an error in this question or solution?
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