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Extract of Receipt and Payment Account for the year ended on March 31, 2021 is given.

Calculate the amount of Stationery to be shown in Income and Expenditure A/c.

Payments for Stationery: Rs. 23,000

Additional Information:

1 April, 202031 Mar 2021
Stock of Stationary4,0003,000
Creditors for stationery9,0002,500

Solution

✅ Correct Option: 1

Stationery consumed = Payments + Opening stock - Closing stock + Closing creditors - Opening creditors. = 23000 + 4000 - 3000 + 2500 - 9000 = 17500. Hence Rs. 17,500 is charged to Income and Expenditure Account.

Note: This is a Not-for-Profit Organisation item; we classified it under Partnership Accounting as the nearest available subtopic.

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