Practical Problem 11
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.