Accounting Policies

Save Share

This query is : Resolved

sanalkumar t m (Querist)

22 January 2010 I am auditing a charitable school?
1000 of student studing their?
Fees for the year 1000/ students?
50 Nos student being poor not charging fees?
100 Nos students paying half fee( ie 50%),because unale to collect?

How should account the above?
Should I accounts Cash basis Or accruel basis?
Pls advice on me about this?
Pls Specify the respective heads of accounts also?
What audit evidence should I collect?

Pls reply Urgently

CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)

22 January 2010 The questions raised by you are of common nature in case of a School.

Generally; the books are maintained on cash basis in such cases.

However; recording of fee should be made studentwise to know how much collection has been made from a student and how much is yet to be collected.

If fee structure is different from standard to standard i.e.primary, secondary etc. then Main Heading should be opened accordingly thenafter subheading should be opened as Standardwise and then student's account should be opened under his respective standard.

Further; make sub-division of fee like term fee, admission fee, exam fee etc. if the fee is not being collected at one time.

Have a list from the Management to whom they have given exemption and/or concession in the school fee.

Match this one from the recording of transactions.

Audit evidence are one and same : Here you will see the receipts issued by the school to the students. For payments; vouchers and bills are to be checked.

Check the internal control procedure that receipts from the students are issued at the moment they pay the fee.

The amount collected should be paid either on the same day or on very next day to the bank to have a check on the amount collected daywise.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now