OMTEX CLASSES: 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.

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	Amount ₹	Assets	Amount ₹
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	Amount ₹	Amount ₹	Income	Amount ₹	Amount ₹
To Salary	90,000		By Tuition Fees	90,000
Add: Outstanding Salary	9,000	99,000	Add: Outstanding tuition 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 Expenses		9,000
To Repairs		15,000
To Depreciation
Library Books	9,000
Furniture	10,000	19,000
To Surplus (Excess of income over expenditure)		48,800
		2,53,000			2,53,000

Balance Sheet as on 31st March, 2020

Liabilities	Amount ₹	Amount ₹	Assets	Amount ₹	Amount ₹
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.

Book-keeping and Accountancy 12th Standard

HSC Maharashtra State Board. Latest Syllabus.

Chapter 1: Introduction to Partnership and Partnership Final Accounts

Chapter 2: Accounts of ‘Not for Profit’ Concerns

Chapter 3: Reconstitution of Partnership (Admission of Partner)

Chapter 4: Reconstitution of Partnership (Retirement of Partner)

Chapter 5: Reconstitution of Partnership (Death of Partner)

Chapter 6: Dissolution of Partnership Firm

Chapter 7: Bills of Exchange

Chapter 8: Company Accounts - Issue of Shares

Chapter 9: Analysis of Financial Statements

Chapter 10: Computer In Accounting