income recognition

This query is : Resolved

bhargavi.maturi (Querist)
Follow

17 May 2008 In an audit of college we had a doubt regarding income. In the college ,batch starts from july and ends in next june .The college is collecting Rs 100000 towards yearly fees from each student . The college is receiving amount whenever the student pays . Most of the fees is collected in 2007-2008 and some fee is received in april 2008. Now I have a doubt that, how income should be shown in the books of accounts if the F.Y. of the college ends on march 31st 2008.

Bhargavi

Krishan Aggarwal

Krishan Aggarwal (Expert)
Follow

17 May 2008 Hello,
The college is receiving amount whenever the student pays .
This is some doubtable point for me but as for as the Revenus recognistion for the F.Y 2007-08 is concerned it should be recognised over the period of time as per AS-9.
CA Krishan Aggarwal

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
Follow

18 May 2008 The recognition of revenue should be on accrual basis, as the fee is a known amount. Fee not paid before 31st March will appear as outstanding

Upgrade to CAclubindia Pro. Subscribe Now!