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: ₹23,000
Additional Information:
| Particulars | 1 April,2020 | 31 March 2021 |
| Stock of stationery | 4,000 | 3,000 |
| Creditors for stationery | 9,000 | 2,500 |
Answer & explanation
Correct answer: option 1
The correct answer is option 1- ₹17,500.
Payment made for the purchase of stationery as per Receipts and Payments account 23,000
Less: Creditors in the beginning 9,000
Payment made for the year 2014-15 14,000
Add: Payment not yet made (i.e. creditors at the end) 2,500
Stationery Purchased for the year 2014-15 16,500
Add: Stock in the beginning 4,000
Stationery Available for consumption during 2014-15 20,500
Less: Stock at the end 3,000
Stationery Consumed during 2014-15 to be taken to Income and Expenditure A/c 17,500