Accounting for cost of a fixed asset ordered but not received.

An autonomous organisation following accrual method of accounting has made a purchase order for a bus costing Rs.50.00 lakh on 01.03.2016. An advance of Rs.10 lakh was paid along with purchase order. The bus was not received by the institute by the end of 31.03.2016. However, in the balance sheet on 31.03.2016, the institute has disclosed an amount of Rs.50.00 lakh i.e. cost of bus under capital work in progress under assets side and Rs.40.00 lakh i.e. balance amount payable on receipt of bus as current liability under liabilities side. Does the accounting is acceptable under accrual method of accounting? The bus was actually received in April 2016 i.e. in 2016-17. Our contention is, the institute should restrict to show the advance of Rs.10.00 lakh under current assets in the B/s as on 31.03.2016 and should not create any liability for the balance amount payable as no liability has been accrued to the institute as on 31.03.2016 for payment of Rs.40.00 Lakh.