Balance Sheet as on 1st
April, 2007
|
Liabilities
|
Amount
|
Assets
|
Amount
|
|
Entrance
Fees
|
6000
|
Furniture
|
16800
|
|
Capital
Fund
|
103800
|
Laboratory
|
20000
|
|
|
|
Library
|
25000
|
|
|
|
Investment
|
40000
|
|
|
|
Cash
in hand
|
1000
|
|
|
|
Cash
at bank
|
3000
|
|
|
|
Outstanding
Tuition Fees
|
4000
|
|
|
109800
|
|
109800
|
Receipts and Payments Account for
the year ended 31st March, 2008
|
Receipts
|
Amount
|
Payments
|
Amount
|
|
To
Balance b/d
|
|
By
Furniture Purchased
|
5400
|
|
Cash
in hand
|
1000
|
By
Salaries
|
60000
|
|
Cash
at bank
|
3000
|
By
Rent
|
28000
|
|
To
Tuition Fees
|
80000
|
By
Sundry Expenses
|
15200
|
|
To
Term Fees
|
26200
|
By
Annual gathering expenses
|
11300
|
|
To
Government grant
|
16000
|
By
Insurance
|
4000
|
|
To
Donation of library
|
30000
|
By
closing Balance
|
|
|
To
Interest on Investment
|
2000
|
Cash
at bank
|
34300
|
|
|
158200
|
158200
|
|
Adjustments:
1. Tuition fees still receivable
are Rs. 10,000.
2. Salaries still payable are Rs.
30,000
3. Insurance premium is paid for
one year ending 30.9.2008.
4. Rent paid in advance Rs. 4000.
5. Depreciate furniture and library
at 10%.
Depreciation to be charged on the
closing balances of the assets.
Solution:
In the Books of Vidya Mandir High
School, Alibag
Income & Expenditure A.c for
the Year Ended 31st March, 2008
|
Particulars
|
Amount
|
Amount
|
Particulars
|
Amount
|
Amount
|
|
To Salaried
|
60000
|
|
By Tuition Fees
|
80000
|
|
|
(+) Outstanding
|
30000
|
90000
|
(-) Last Year Amount
|
-4000
|
|
|
To Rent
|
28000
|
|
|
76000
|
|
|
(-) Prepaid
|
-4000
|
24000
|
(+) Outstanding of Current Year
|
10000
|
86000
|
|
To Sundry Expenses
|
|
15200
|
By Tern Fees
|
|
26200
|
|
To Annual gathering Expenses
|
|
11300
|
By Government grant
|
|
16000
|
|
To Insurance
|
4000
|
|
By Interest on Investment
|
|
2000
|
|
Less: Prepaid
|
2000
|
2000
|
|
|
|
|
To Depreciation
|
|
|
|
|
|
|
On Furniture
|
2220
|
|
|
|
|
|
On Library
|
2500
|
4720
|
By Excess of Expenditure over
Income [Deficit]
|
|
17020
|
|
|
|
147220
|
|
|
147220
|
Balance Sheet as on 31st
March, 2008
|
Liabilities
|
Amount
|
Amount
|
Assets
|
Amount
|
Amount
|
|
Capital Fund
|
103800
|
|
Furniture
|
16800
|
|
|
Less: Deficit
|
17020
|
86780
|
Add: Purchase new furniture
|
5400
|
|
|
Entrance Fees
|
|
6000
|
|
22200
|
|
|
Library Fund
|
|
30000
|
Less: Depreciation @ 10%
|
2220
|
19980
|
|
Outstanding Salaries
|
|
30000
|
Laboratory
|
|
20000
|
|
|
|
|
Library
|
25000
|
|
|
|
|
|
Less: Depreciation @ 10%
|
2500
|
22500
|
|
|
|
|
Investment
|
|
40000
|
|
|
|
|
Cash at Bank
|
|
34300
|
|
|
|
|
Tuition Fees receivable
|
|
10000
|
|
|
|
|
Prepaid Insurance
|
|
2000
|
|
|
|
|
Prepaid Rent
|
|
4000
|
|
|
|
152780
|
|
|
152780
|
Working Notes:
1. Last year’s outstanding
tuition fees of Rs. 4000 are deducted from tuition fees of Rs. 80000 and there
will be no second effect. At the same time Outstanding tuition fees of Rs.
10000 for the current year is added to tuition on the credit side of Income and
Expenditure A/c and then shown the same on the Asset side of the Balance Sheet.
2. Outstanding Salaries of Rs.
30,000 is first added to salaries on the debit side of Income and Expenditure
A/c and then shown the same on the liability side of the balance sheet.
3. Insurance for 6 months i.e.
from 1.4.2008 to 3.09.2009 is paid in advance it means 6 months prepaid. Insurance
prepaid = (6/12) × 4000 = RS. 2000.
5. Calculation of Depreciation:
On Furniture = 10% of (16800 +
5400) = 10% × 22200 = 2220
On Library = 10% × 25000 = 2500
6.
Entrance Fees of Rs. 6000 given in the opening balance sheet is carried forward
and shown on the liabilities side of new balance sheet. 