From the following Receipts and payments Account "K.B.P. Engineering College" Nashik for the year ending on 31.0.2019 and additional information, prepare Income and Expenditure Account for the year ending 31.03.2019 and Balance Sheet as on that date.

10. From the following Receipts and payments Account "K.B.P. Engineering College" Nashik for the year ending on 31.0.2019 and additional information, prepare Income and Expenditure Account for the year ending 31.03.2019 and Balance Sheet as on that date. 

 Receipts and Payments Account for the ending 31.03.2019

Dr.                                                                                                                                        Cr.

Receipts	Amt ₹	Amt ₹	Payments	Amt ₹	Amt ₹
To Balance b/d
cash in Hand		18,000	By Salaries to Teaching staff		11,70,000
Cash at Bank		1,00,400	By Electricity Charges		55,000
To Interest		55,000	By Books		61,000
To Subscriptions		28,300	By Furniture		51,000
To Life Membership fees		25,000	By Stationery		21,850
To Donation		7,00,000	By Fixed Deposit (31.03.2019)		8,50,000
To Tuition fees		12,30,000	By Balane c/d
To Term fees		2,00,800	cash in Hand		16,650
To Sundry Receipts		8,000	Cash at Bank		2,00,000
To Admission fees (Revenue)		60,000
		24,25,500			24,25,500

Additional Information:

Particulars	0104.2018 ₹	31.03.2019 ₹
Books	6,00,000	6,00,000
Furniture	3,19,000	3,00,000
Building Fund	10,00,000	?
Fixed Deposit	9,10,000	?
Capital Fund	9,47,400	?

1. 50% of Donation are for Building Fund and the balance is to be treated Revenue Income.

2. Outstanding Subscription ₹ 5,300.

3. Life membership fees are to capitalized. 

Solution:

In the books of "K.B.P. Engineering College"

Income and Expenditure Account for the year ending 31.03.2019

Dr.                                                                                                                                 Cr.

Expenditure	Amount	Amount	Income	Amount	Amount
To salaries to Teaching Staff		11,70,000	By Interest		55,00
To Electricity Chargers		55,000	By Subscription	28,300
To Stationery		21,850	(+) Outstanding Sub.	5,300	33,600
			By 50% Donation		12,30,000
To Depreciation on			By Tuition fees		2,00,800
Furniture	(51,000  19,000)	70,000	By Sundry Receipts		8,000
Books		61,000	By Admission fees		60,000
			By Interest		5,000
To Surplus		5,59,550
		19,37,400			19,37,400

Balance Sheet as on 31.03.2019

Dr.                                                                                                                                      Cr.

Liabilities	Amount	Amount	Assets	Amount	Amount
Capital Fund	9,47,400		Books		6,00,000
(+) Life Membership	25,000		Furniture	3,19,000
(+) Surplus	5,59,550	15,31,950	(-) Depreciation	19,000	3,00,000
Building Fund	10,00,000		Fixed Deposit		8,50,000
(+) Donation	3,500,000	13,50,000	Outstanding Sub.		5,300
			Fixed Deposit		9,00,000
			Cash in Hand		16,650
			Cash at Bank		2,00,000
		28,81,950			28,81,950