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From the following Balance Sheet and Receipts and Payments Account of “New English School”, Barshi, Prepare Income and Expenditure Account for the year ending 31.03.2020 - Book Keeping and Accountancy

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From the following Balance Sheet and Receipts and Payments Account of “New English School”, Barshi, Prepare Income and Expenditure Account for the year ending 31.03.2020 and a Balance Sheet as on that date.

Balance Sheet as on 01.04.2019
Liabilities Amount
₹ 
Assets Amount
₹ 
Capital Fund 6,43,000 Cash in Hand 6,000
    Cash at Bank 10,000
    Building 4,50,000
    Furniture 72,000
    Library Books 45,000
    Computer Laboratory 60,000
  6,43,000   6,43,000

 

Dr Receipts and Payments Account for the year ending 31.03.2020 Cr
Receipts Amount ₹ Amount ₹ Payments

Amount

Amount
To Balance b/d     By Salary   90,000
Cash in Hand 6,000   By Library Books   14,000
Cash at Bank 10,000 16,000 By Office Rent   10,000
To Tuition Fees   90,000 By Printing and Stationery   22,000
To Term Fees   3,000 By Sundry Expenses   12,000
To Admission Fees   12,000 By Insurance   10,200
To Donation (Capital)   61,000 By Sport Expenses   8,000
To Interest Received   2,000 By Annual Gathering Exp   9,000
To Government Grant (Revenue)   1,20,000 By Furniture   50,000
To Sundry Receipts   11,000 By Repairs   15,000
      By Balance c/d    
      Cash in Hand 4,800  
      Cash at Bank 70,000 74,800
    315000     315000

Additional Information :

1) Outstanding Salary of ₹ 9,000

2) Outstanding Tuition Fees ₹ 15,000

3) Depreciate Library Books by ₹ 9,000 and Furniture by ₹ 10,000

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Solution

In the books of New English School, Barshi

Dr  Income and Expenditure Account for the year ended 31st March, 2020 Cr
Expenditure Amount
Amount
Income Amount
Amount
To Salary 90,000   By Tuition Fees 90,000  
Add: Outstanding Salary 9,000 99,000 Add: Outstanding tuition Fees 15,000 1,05,000
To Office rent   10,000 By Term Fees   3,000
To Printing and Stationery   22,000 By Admission Fees   12,000
To Sundry Expenses   12,000 By Interest Received   2,000
To Insurance   10,200 By Government Grant   1,20,000
To Sport Expenses   8,000 By Sundry Receipts   11,000
To Annual Gathering Expenses   9,000      
To Repairs   15,000      
To Depreciation          
Library Books 9,000        
Furniture 10,000 19,000      

To Surplus

(Excess of income over expenditure)

  48,800      
    2,53,000     2,53,000

 

Balance Sheet as on 31st March, 2020
Liabilities Amount ₹ Amount ₹ Assets Amount ₹ Amount ₹
Capital Fund 6,43,000   Building   4,50,000
Add: Surplus 48,800   Furniture 72,000  
Add: Donation 61,000 7,52,800 Add: Purchases 50,000  
Outstanding Salary   9,000   1,22,000  
      Less: Depreciation 10,000 1,12,000
      Library Books 45,000  
      Add: Purchases 14,000  
        59,000  
      Less: Depreciation 9,000 50,000
      Computer Laboratory   60,000
      Cash in Hand   4,800
      Cash at Bank   70,000
      Outstanding Tuition Fees   15,000
    7,61,800     7,61,800

Working Notes :

(1) Donation (Capital) is added in Capital fund.

(2) Government Grant ₹ 1,20,000 is recorded on the credit side of Income & Expenditure A/c because it is revenue income of the organisation.

(3) Outstanding tuition fees ₹ 15,000 and outstanding salary ₹ 9,000 are added to respective head of Account and then they are shown separately on the Assets side and Liabilities side of Balance Sheet respectively.

  Is there an error in this question or solution?
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APPEARS IN

Balbharati Book-keeping and Accountancy 12th Standard HSC Maharashtra State Board
Chapter 2 Accounts of ‘Not for Profit’ Concerns
Practical Problems | Q 11 | Page 121
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