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
Made by
Davneet Singh
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.