Read the following information provided by a school and attempt Question:
The Trial Balance of a school as on 31.3.2017 is
|
Debit Balance |
Amount (₹) |
Credit Balance |
Amount (₹) |
|
Building |
6,25,000 |
Admission fees |
12,500 |
|
Furniture |
50,000 |
Tuition fees received |
5,00,000 |
|
Library books |
1,50,000 |
Creditors for supplies |
15,000 |
|
Investment @12% (1.4.16) |
5,00,000 |
Rent for the school hall |
10,000 |
|
Salaries |
5,00,000 |
Miscellaneous receipts |
30,000 |
|
Stationery |
40,000 |
Legacies (general) |
3,50,000 |
|
General expenses |
18,000 |
General fund |
10,00,000 |
|
Sports expenses |
15,000 |
Donation for library books |
62,500 |
|
Cash at bank |
1,00,000 |
Sale of old furniture |
20,000 |
|
Cash in hand |
2,000 |
|
|
|
|
20,00,000 |
|
20,00,000 |
Additional Information:
The book value of the furniture sold was ₹50,000 on April 1, 2016 was sold for ₹20,000.
Tuition Fees Received will be ______.
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Shown as Income and credited to Income and Expenditure A/c.
Tuition fees received are considered income for the educational institution, and they are credited to the Income and Expenditure Account. This account reflects the institution's income and expenses for the period, and tuition fees contribute to the income side. Since tuition fees are income, they are credited to the Income and Expenditure Account and not shown as liabilities or expenses.