Question

PRACTICAL PROBLEMS

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			By Salaries to
Cash in Hand		15,950	• Teaching Staff	8,50,500
Cash at Bank		1,00,070	• Office Staff	1,81,000
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		6,36,000	By Stationery	19,950
To tuition Fees		11,20,000	By Fixed Deposit	7,50,000
To Term Fees		2,00,900	31/03/2013
To Admission Fees		55,000	By Balance c/d
To Sundry Receipts		6,930	Cash in Hand	13,500
			Cash at Bank	2,62,500
		22,32,150		22,32,150

Additional Information:

1)

Particulars	01/04/2012	31/03/2013
Books	5,50,000	5,50,000
Furniture	2,15,000	2,00,000
Building Fund	9,35,000	?
Fixed Deposits	8,00,000	?
Capital Fund	7,46,020	?

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)	Income		Amount (Rs)
Electricity		51,900	Subscription	25,800
Depreciation on:			Add: Advance in the beginning	4,200	30,000
Furniture	60,000		Sundry Receipts		6,930
Books	57,800	1,17,800	Interest		51,000
Salaries paid to:			Donation		3,18,000
Teachers	8,50,500		Tuition Fees		11,20,000
Staff	1,81,000	10,31,500	Term Fees		2,00,900
Stationery		19,950	Admission Fees		55,000
Surplus (Excess of Income over Expenditure)		5,60,680
		17,81,830			17,81,830

Balance Sheet as on March 31,2013
Liabilities		Amount (Rs)	Assets		Amount (Rs)
Capital Fund			Furniture	2,15,000
Opening Balance	7,46,020		Add: Purchases	45,000
Add: Life Membership Fees	20,500			2,60,000
Add: Surplus	5,60,680	13,27,200	Less: Depreciation	60,000	2,00,000
Building Fund	9,35,000		Books	5,50,000
Add: Donation	3,18,000	12,53,000	Add: Purchases	57,800
			Less: Depreciation	57,800	5,50,000
			Subscription Outstanding		4,200
			Fixed Deposits	8,00,000
			Add: Investments	7,50,000	15,50,000
			Cash in Hand		13,500
			Cash at Bank		2,62,500
		25,80,200			25,80,200

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