Practical Problem 11

Practical Problems | Q 11 | Page 121

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

Amt ₹

Assets

Amt ₹

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

                                                                      Receipts and Payments Account for the year ending 31.03.2020

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

SOLUTION:

                                                                                            In the books of New English School, Barshi

                                                                         Income and Expenditure Account for the year ended 31st March, 2020

Expenditure

Amt ₹

Amt ₹

Income

Amt ₹

Amt ₹

To Salary

90,000

 

By Tuition Fees

90,000

 

Add: Outstanding Salary

9,000

99,000

Add: O/s Ttuition 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 Exp.

 

9,000

   

To Repairs

 

15,000

   

To Depreciation

     

Library Books

9,000

    

Furniture

10,000

19,000

   

To Surplus

(Excess of income over exp.)

 

48,800

   
  

2,53,000

  

2,53,000

                                                                                          Balance Sheet as on 31st March, 2020

Liabilities

Amt ₹

Amt ₹

Assets

Amt ₹

Amt ₹

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.