Accountancy Part AAccounts for Non Profit Organsiation

The opening stock of raw materials is ₹40,000 while the closing stock…

The opening stock of raw materials is ₹40,000 while the closing stock of raw materials is ₹60,000 and the material consumed during the financial year is ₹1,90,000.

Calculate the amount of material purchased during the current year.

Answer & explanation

Correct answer: option 2

The correct answer is Option (2) → ₹2,10,000

Material consumed = Opening stock + Purchases − Closing stock, so purchases are found by working backwards.

Purchases = Consumed + Closing stock − Opening stock

= ₹1,90,000 + ₹60,000 − ₹40,000

= ₹2,10,000

Note: This question is from the pre-rationalised NCERT book. The topic is not there in the latest NCERT book (2026-27), but it is still in the CUET 2026 syllabus, so do not skip it.

NCERT (Pre-rationalised edition):
Stationery – “… Normally expenses incurred on stationary, a consumable items are charged to Income and Expenditure Account. But in case stock of stationery (opening and/or closing) is given, the approach would be make necessary adjustments in purchases of stationery and work out cost of stationery consumed and show that amount in Income and Expenditure Account and its stock in the balance sheet.”