Check sibling questions

Following information is given by Alchemy Medical College, Library department for the year 2020-21.

Particulars  Amount
Books and Journals Fund as on 1.4.2020  4,50,000
7% Books and Journals Fund Investments as on 1.4.2020  4,00,000
Interest on Books and Journals Fund Investments  13,000
Donations for Books and Journals  20,000
Books Purchased  70,000
General Fund as on 1.4.2020  10,00,000

 

Show the accounting treatment of the above-mentioned items in the Balance Sheet of the Alchemy Medical College as at 31st March,2021.

 

Answer

                                                             AN EXTRACT OF BALANCE SHEET
LIABILITIES Amount ASSETS Amount
General Fund                         1000000   7% Books & Journal Funds 400000
Add: Book funds                      70000 1070000 Investment  
    Accrued Interest on Books 15000
Books and Journal funds          450000   Journal funds investment Books 70000
Add: Donation for                   20000      
Books & Journal      
Interest on Books & Journal      
Investment                            13000      
Accrued Interest                    15000      
Less: Books Purchased           70000 428000    

 

Calculation of Interest on Books and Journals = 400000 x 7%  = 28000

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Transcript

Following information is given by Alchemy Medical College, Library department for the year 2020-21. Particulars Amount Books and Journals Fund as on 1.4.2020 4,50,000 7% Books and Journals Fund Investments as on 1.4.2020 4,00,000 Interest on Books and Journals Fund Investments 13,000 Donations for Books and Journals 20,000 Books Purchased 70,000 General Fund as on 1.4.2020 10,00,000 Show the accounting treatment of the above-mentioned items in the Balance Sheet of the Alchemy Medical College as at 31st March,2021. Answer AN EXTRACT OF BALANCE SHEET LIABILITIES Amount ASSETS Amount General Fund 1000000 7% Books & Journal Funds 400000 Add: Book funds 70000 1070000 Investment Accrued Interest on Books 15000 Books and Journal funds 450000 Journal funds investment Books 70000 Add: Donation for 20000 Books & Journal Interest on Books & Journal Investment 13000 Accrued Interest 15000 Less: Books Purchased 70000 428000 Calculation of Interest on Books and Journals = 400000 x 7% = 28000

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Davneet Singh is a graduate from Indian Institute of Technology, Kanpur. He has been teaching from the past 12 years. He provides courses for Maths and Science at Teachoo.