You are on page 1of 5

Accounting for university's transactions

A university collected 900,000 of student's fees of the

year,and still 180,000 due but not collected. During the
year, the university got a governmental grant of
400,000 to upgrade the IT system and a local grant of
600,000 for building maintenance. It also collected
revenue from the selling food in the cafeteria and the
un. Restaurant equals 330,000 and from student
accommodation 290,000, revenue from consultancy
services 200,000.
In order to encourage excellence in education, the
university provided a scholarship of 200,000 to 2
students in engineering for a prize-winner project in
local competition, waived 30,000 of due fees for
.disable students
The university purchased the following items:
Computers for 240,000, printers for 60,000,
photocopiers for 120,000, chemicals for pharma
students for 360,000 (310,000 used), technical
equipment for tests for 450,000. The last two items
only were on credit.
In addition, the university had the following expenses:
Salaries to staff 820,000 (1/4 still due), education
expenses 485,000, transportation 410,000, cost of
catering 520,000.
The Answer (amounts in thousand(
Dr. Cash 900
Accounts Receivable 180
Cr. Revenues – Tuition & Fees 1080
Dr. cash 1000
Cr. Revenue- gov. grant 400
Revenue- local grant 600
Dr. cash/A. R 820
Cr. Revenue - Restaurant 330,000
Revenue- student accommodation 290,000,
Revenue - consultancy services 200,000.
Dr. Revenue deduction- scholarship 200
Revenue deduction- waiving fees 30
Cr. Cash 200
A.R 30
Dr. Computers 240,000
printers 60,000
photocopiers 120,000
Cr. Cash/ A. P. 420
Dr. Inventory of chemicals 360
Cr. Acc. Payable 360
Dr. Education expenses- chemicals 310
Cr. Inventory of chemicals 310
Dr. Equipment 450
Cr. Acc. Payable 450
Dr. Salaries expense 820,000
Cr. Cash 615 (- 820-205)
Salaries payable 205 (1/4 X 820,000= 205 still
Dr. education expenses 485,000
transportation 410,000
cost of catering 520,000
Cr. Cash 1415

Q2- Solve similar to the above:

A university collected 4.8m as student fees, in
addition, 1.8m still not collected. The university
provided services to some companies for revenue
3.2m, revenue from student accommodation 6.2m,
from catering in-campus 4.3m, from providing
transportation to staff 2m and to students 3.84m. It
also won a prize for innovation with a 0.200m cash.
The ministry of higher education provided a grant of
2m for renewing buildings and also obtained a gift
from the Arab Education Fund of 1.5m for enhancing
technical courses.
The university allowed scholarships of 1.8m and
waiving due fees of 0.800m.
The university purchased new buses for 3.15m,
computers and upgrade to the network server 4.28m
(half on credit). Purchased Medical supplies for med-
students for 6.2m (4m used).
The expenses of the year include: salaries 4.2m
(0.600m of it still due), cost of promotion campaign
3m, improvements to the surrounding community
1.2m. Education and general expenses 8.3, cost of
purchase of books 3.7m and software licensed 2m.