Maharashtra State BoardHSC Arts 12th Board Exam
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From the following Receipts and Payments Account “K.B.P. Engineering College” Nashik for the year ending on 31.03.2019 and additional information, - Book Keeping and Accountancy

Ledger

From the following Receipts and Payments Account “K.B.P. Engineering College” Nashik for the year ending on 31.03.2019 and additional information, prepare Income and Expenditure Account for the year ending 31.03.2019 and Balance Sheet as on that date.

Dr Receipts and payments Account for the year ending 31.03.2019. Cr
Receipts Amount ₹ Payments Amount ₹
To Balance b/d   By Salaries to Teaching Staff 11,70,000
Cash in Hand 18,000 By Electricity Charges 55,000
Cash at Bank 1,00,400 By Books 61,000
To Interest 55,000 By Furniture 51,000
To Subscriptions 28,300 By Stationery 21,850
To Life Membership fees 25,000 By Fixed Deposit (31.03.2019) 8,50,000
To Donation 7,00,000 By Balance c/d  
To Tuition Fees 12,30,000 Cash in Hand 16,650
To Term Fees 2,00,800 Cash at Bank 2,00,000
To Sundry Receipts 8,000    
To Admission Fees (Revenue) 60,000    
  24,25,500   24,25,500

Additional Information :

Particulars 01.04.2018 ₹ 31.03.2019 ₹
Books 6,00,000 6,00,000
Furniture 3,19,000 3,00,000
Building Fund 10,00,000 ?
Fixed Deposit 9,10,000 ?
Capital Fund 9,47,400 ?

1) 50% of Donation are for Building Fund and the balance is to be treated Revenue Income.

2) Outstanding subscription ₹ 5,300

3) Life membership fees are to capitalised

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Solution

In the books of K.B.P. Engineering College, Nashik

Dr Income and Expenditure Account for the year ended on 31st March, 2019 Cr
Expenditure Amount ₹ Amount ₹ Income Amount ₹ Amount ₹
To Salaries to Teaching Staff   11,70,000 By Interest   55,000
To Electricity Charges   55,000 By Subscription 28,300  
To Stationery   21,850 Add: Outstanding Subscription 5,300 33,600
To Depreciation     By Donations 7,00,000  
Furniture 70,000   Less: 50 % for Building Fund 3,50,000 3,50,000
Books 61,000 1,31,000 By Tuition Fees   12,30,000

To Surplus

(Excess of income over expenditure)

  5,59,550 By Term Fees   2,00,800

 

    By Sundry receipts   8,000

 

    By Admission Fees   60,000
    19,37,400     19,37,400

 

Balance Sheet as on 31st March, 2019
Liabilities Amount
Amount
Assets Amount
Amount
Capital Fund 9,47,400   Outstanding Subscription   5300
Add: Surplus 5,59,550   Books 6,00,000  
Add: Life Membership Fees (Capitalised) 25,000 15,31,950 Add: Purchases 61,000  
Building Fund 10,00,000     6,61,000  
Add: 50% of Donations 3,50,000 13,50,000 Less: Depreciation 61,000 6,00,000
      Furniture 3,19,000  
      Add: Purchase 51,000  
        3,70,000  
      Less: Depreciation 70,000 3,00,000
      Fixed Deposits (Old)   8,50,000
      Cash in Hand   16,650
      Cash in Bank   2,00,000
      Fixed Deposits (New)   9,10,000
    28,81,950     28,81,950

Working Notes :

(1) Life membership fees are to be capitalised, means add entire amount in capital fund.

(2) 50% of Donations of ₹ 7,00,000 i.e., ₹ 3,50,000 is to be added to the Building Fund, and the remaining amount of donation i.e., ₹ 3,50,000 is credited to Income and Expenditure A/c.

(3) The depreciation on Fixed assets is calculated by using following formula:

Depreciation = Opening balance + Purchases – Closing value

∴ Depreciation on Books = 6,00,000 + 61,000 – 6,00,000

= 6,61,000 – 6,00,000

= ₹ 61,000

∴ Depreciation on Furniture = 3,19,000 + 51,000 – 3,00,000

= 3,70,000 – 3,00,000

= ₹ 70,000

(4)

Fixed deposit :  
Opening balance given   = ₹ 9,10,000
Fixed deposit (31 – 03 – 2019) (Newly purchased)  = ₹ 8,50,000
∴ Total fixed deposits  = ₹ 17,60,00

(5) Admission Fees ₹ 60,000 is recorded on the credit side of Income and Expenditure A/c because it is taken as revenue income.

  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 10 | Page 120
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