Shiv-e-Narain Education Trust provides the information in regard to Receipt and Payment Account and Income and Expenditure Account for the year ended March 31st 2017:
Receipt and Payment Account for the year ending March 31, 2017

On March 31, 2016 the following balances appeared:
Investments Rs.1, 60,000, Furniture Rs.40, 000, and Books Rs.20, 000.
Income and Expenditure Account for the year ending on March 31, 2017

Prepare opening and closing balance sheet

Explanation

Shiv-e-Narain Education Trust
Balance Sheet as on March 31, 2016

Balance Sheet of Shiv-e-Narain Education Trust as on March 31, 2017

Note:
1. Income and Expenditure Account for the current year shows interest on investment income Rs.6,800 while Receipts and Payments Account shows the receipts of Rs.6,000 the difference of Rs.800 means interest on investment has become due but not yet receivable during the year.
2. Income and Expenditure Account shows Rs.90,000 as income from Tuition fees. However, the Receipts and Payments Account shows Rs.10,000 as tuition fees received for the year 2017-18 and Rs.80,000 for 2015-16. It implies that Rs.10,000 on account of tuition fees for the year 2016-17 are still receivable (i.e. Tuition fees are outstanding).
3. Receipt and Payment Account shows a payment of Rs.85,000 on account of staff salaries, but the Income and Expenditure Account shows expenditure of Rs.84,000 on account of staff salaries. It means the excess of Rs.1,000 shown in the Receipt and Payment Account may either belong to the pervious year or the next year. Their is no evidence that staff salaries of Rs.1,000 was outstanding at the end of the previous year 2013-14. This is why this payment of Rs.1,000 has been considered as an advance salaries to the staff.