Question

From the following Receipts and Payments Account of Nanasaheb Patil Engineering College, Faizpur for the year ending 31 March 2013 and additional information, Prepare Income and Expenditure Account for year ending 31/03/2013 and a Balance Sheet as on that date.

Receipts and Payments Account for the year ending 31.03.2013

Dr.                                                                                                      Cr.

Receipts	Amount (Rs.)	Payments	Amount (Rs.)
To Balance b/d Cash in Hand Cash at Bank	15,950 100,070	By Salaries to • Teaching Staff • Office Staff	850,500     181,000
To Interest	51,000	By Electricity	51,900
To Subscriptions	25,800	By Books	57,800
To Life Membership Fees	20,500	By Furniture	45,000
To Donations	636000	By Stationery	19,950
To tuition Fees	1120,000	By Fixed Deposit 31/03/2013	750,000
To Term Fees	200,900	By Balance c/d Cash in Hand Cash at Bank	13500 262,500
To Admission Fees	55,000
To Sundry Receipts	6,930
	2232,150		2232,150

Additional Information:

1)

Particulars	01/04/2012	31/03/2013
Books	5,50,000	5,50,000
Furniture	2,15,000	200,000
Building Fund	935,000	?
Fixed Deposits	800,000	?
Capital Fund	746,020	?

2) 50% of Donations are for Building Fund and the balance is to be treated as revenue income.
3) Outstanding Subscription Rs 4,200.
4) Life Membership Fees are to be capitalized.

Answer 1

Nanasaheb Patil Engineering College, Faizpur

Income and Expenditure Account

for the year ending March 31,2013

Dr.                                                                                                         Cr.

Expenditure	Amount (Rs)	Amount (Rs)	Income	Amount (Rs)	Amount (Rs)
Electricity		51,900	Subscription	25,800	30,000
Depreciation on: Furniture Books	60,000 57,800	117,800	Add: Advance in the beginning	4,200
Salaries paid to: Teachers Staff	850,500 181,000	1031,500	Sundry Receipts		6930
Stationery		19,950	Interest		51,000
Surplus (Excess of Income over Expenditure)		560,680	Donation		318,000
			Tuition Fees		1120,000
			Term Fees		200,900
			Admission Fees		55,000
		1781,830			1781,830

                                 

Balance Sheet

                                         as on March 31,2013

Liabilities	Amount (Rs)	Amount (Rs)	Assets	Amount (Rs)	Amount (Rs)
Capital Fund			Furniture	215,000	200,000
Opening Balance	746,020		Add: Purchases	45,000
Add: Life Membership Fees	20,500	1327,200		260,000
Add: Surplus	560,680		Less: Depreciation	60,000
			Books	550,000	550,000
Building Fund	935,000	1253,000	Add: Purchases	57,800
Add: Donation	318,000		Less: Depreciation	57,800
			Subscription Outstanding		4,200
			Fixed Deposits	800,000	1550,000
			Add: Investments	7,50,000
			Cash in Hand		13,500
			Cash at Bank		262,500
		2580,200			2580,200

Working Notes:
WN1: Calculation of Depreciation on Furniture:
Depreciation on Furniture = Furniture as on Apr. 01, 2012 + Purchases - Furniture as on Mar. 31, 2013
2,15,000 + 45,000 - 2,00,000 = Rs 2,60,000

 

WN2: Calculation of Depreciation on Books:
Depreciation on Books = Books as on Apr. 01, 2012 + Purchases - Books as on Mar. 31, 2013
5,50,000 + 57,800 - 5,50,000 = Rs 57,800