Question

PRACTICAL PROBLEMS

(Accounting of a School)

From the information given below of Jeevan Vikas Vidyalaya Khamgaon, You are required to prepare, Income and Expenditure Account and Balance Sheet for the year ending on 31.03.2011.

Balance Sheet as at 01.04.2010
Liabilities	Amount Rs	Assets	Amount Rs
Capital Fund	4,99,100	Library Books	1,15,500
Loan	5,00,000	Laboratory Equipments	1,25,000
		Furniture	1,10,000
		Building	6,25,000
		Cash in Hand	3,500
		Cash at Bank	20,100
	9,99,100		9,99,100

Receipts and Payments Account for the year ending 31.03.2011
Dr.	Cr.
Receipts		Amount Rs	Payments		Amount Rs
To Balance b/d			By Salaries		6,25,200
Cash in Hand		3,500	By Purchases
Cash at Bank		20,100	i. Laboratory Equipments	10,000
To Tuition Fees		3,67,500	ii. Library Books	50,000
To Term Fees		35,000	iii. Furniture	20,000	80,000
To Admission Fees		30,600	By Sundry Expenses		10,000
To Government Grant (Revenue)		3,50,000	By Printing and Stationery		35,800
To Sundry Receipts		1,300	By Annual Social
			Gathering Expenses		18,000
			By Balance c/d
			Cash in Hand		4,000
			Cash at Bank		35,000
		8,08,000			8,08,000

Adjustments:

1) Tuition Fees Outstanding Rs 13,500

2) Outstanding Interest on Loan Rs 60,000

3) Entire admission Fees are to be Capitalized.

4) Depreciation is to be written off as under:

Library Books Rs 50,000	Furniture Rs 30,000
Laboratory Equipment Rs 20,000	Building Rs 30,000

Answer 1

Jivan Vikas Vidyalaya, Khamgaon Income and Expenditure Account for the year ending March 31,2011
Dr.			Cr.
Expenditure		Amount (Rs)	Income		Amount (Rs)
Printing and Stationery		35,800	Tuition Fess	3,67,500
Sundry Expenses		10,000	Less: Outstanding at the end	13,500	3,81,000
Annual Social Gathering Expenses		18,000	Term Fees		35,000
Outstanding Interest on Loan		60,000	Government Grants		3,50,000
Salaries paid		6,25,200	Sundry Receipts		1,300
Depreciation on:			Deficit (Excess of Expenditure over Income)		1,11,700
Furniture	30,000
Library Books	50,000
Laboratory Equipment	20,000
Building	30,000	1,30,000
		8,79,000			8,79,000

Balance Sheet as on March 31,2011
Liabilities		Amount (Rs)	Assets		Amount (Rs)
Capital Fund			Furniture	1,10,000
Opening Balance	4,99,100		Add: Purchases	20,000
Add: Admission Fess	30,600			1,30,000
Less: Deficit	1,11,700	4,18,000	Less: Depreciation	30,000	1,00,000
Loan		5,00,000	Outstanding Tuition Fees		13,500
Outstanding Interest on Loan		60,000	Library Books	1,15,500
			Add: Purchases	50,000
			Less: Depreciation	50,000	1,15,500
			Laboratory Equipment	1,25,000
			Add: Purchases	10,000
			Less: Depreciation	20,000	1,15,000
			Building	6,25,000
			Less: Depreciation	30,000	5,95,000
			Investment in Securities
			Stock of Food Stuff
			Cash in Hand		4,000
			Cash in Bank		35,000
		9,78,000			9,78,000