Question

State true or false with reason. Laboratory and library deposits taken from the students in case of an educational institution are shown on the liabilities side of the balance sheet.

Answer 1

Answer:true

Explanation: because it is deposits received from others creates a liabilities hence shown in liability side and it also pending deposit amount

Answer 2

The given Statement is true.

• Laboratory and library deposits taken from the students in the case of an educational institution are shown on the liabilities side of the balance sheet.
• The money taken from the Laboratory and Library from the student is a kind of money that is to be returned to the students or the staff when the book is returned safely by them.
• It works on the same principle as a bank, the bank treats the money deposited by the general public as a liability and has to return it whenever demanded.
• Similarly, the deposits taken by such an institution also need to be returned whenever the student or acknowledging person returns the borrows.
• This concept is thoroughly based on the accounting principles and nature of institutions.

#SPJ3