income recognition

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bhargavi.maturi (Querist)
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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)
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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)
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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

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