How to post journal entries for a re-admission fee paid by student

Dear CA,

I have this scenario. 

One student paid fees and joined the school. After 2 months she quit the school.

School refunded the money and deducted whatever applicable under their rules.

Again she came back after 2 months and want to re-join the school for a new course.

Old course fee is say 30,000 and new course fee is say 40,000.

How to make all these entries in the accounting system? What is the correct procedure ?

If anyone can help with some example entries, I will be thankful.

thanks for your time.

regards

 

Replies (3)
Quick Summary
This discussion addresses the accounting treatment for a student who initially paid fees, left, received a refund, and then re-enrolled for a new course. It provides a step-by-step guide with example journal entries for the initial admission, the refund process with deductions, and the subsequent re-admission. The advice also suggests ensuring these transactions are reflected in the Receipt & Payment Account alongside the Income & Expenditure Account.

1) First admission entry

Bank A/c Dr
To School fees A/c Cr
( fees receipt)

School fees A/c Dr
To Income & Expenditure A/c Cr
( Transfer entry)

 

2) Refund entry

School fees refund A/c Dr
To Bank A/c Cr
To Recovery A/c Cr
( school fees refunded after some deduction)

Recovery A/c Dr
To Income & Expenditure A/c Cr
( Recovery is your income transfer entry)

 

3) Readmission

Bank A/c Dr
To school fees A/c Cr
( fees received)

School fees A/c Dr
To Income & Expenditure A/c Cr
( transfer entry)

I hope you have prepared Receipt & Payment A/c also along with Income & Expenditure A/c , show all receipts & refund entry in receipt & payment A/c  also.
 

@ Narasimhan,

How to You keep your accounts in system...???
Are You use any Accounting Software...??

I am not CA , I am a B.COM , graduate same has been mentioned in my profile also , however I had answered your query, please Confirm with CA also , as you specifically  mentioned  CA to reply your query . 

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