Question 4 (Choice 2) - CBSE Class 12 Sample Paper for 2022 Boards [Term 2] - Accounts - Solutions to CBSE Sample Paper - Accounts Class 12

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