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From the trial balance and other information provided by school for the year ended 31st March 2017. Answer the question.

Debit BalanceAmount (Rs.)Credit BalanceAmount (Rs.)
Building6,25,000Admissions fees12,500
Furniture1,00,000Tuition fees received5,00,000
Library Books1,50,000Creditors for supplies15,000
Investment @12%5,00,000Rent for the school hall10,000
Salaries5,00,000Miscellaneous receipts30,000
Stationery40,000Government grant3,50,000
General expenses18,000General fund10,00,000
Sports expenses15,000Donation for library books62,500
Cash at bank50,000Sale of old furniture20,000
Cash in hand2,000
20,00,00020,00,000

Additional Information:

i. Tuition fee yet to be received for the year are Rs.25,000

ii. Salaries yet to be paid amount to Rs.30,000

iii. Furniture costing Rs.40,000 was purchased on October 1, 2016.

iv. The book value of the furniture sold was Rs.50,000 on April 1, 2016

v. Depreciation is to be charged @10% p.a. on furniture, 15% p.a. on Library books, and 5% p.a. on building.

Tuition fee to be credited to Income and Expenditure account is:

Solution

✅ Correct Option: 1

Tuition fee income for the period = Tuition fee received (Rs.5,00,000) + Tuition fee still receivable (Rs.25,000) = Rs.5,25,000, to be credited to Income and Expenditure Account.

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