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, 2020 31 Mar 2021 Stock of Stationary 4,000 3,000 Creditors for stationery 9,000 2,500
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, 2020 | 31 Mar 2021 | |
|---|---|---|
| Stock of Stationary | 4,000 | 3,000 |
| Creditors for stationery | 9,000 | 2,500 |
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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