Extract of Receipt and Payment Account for the year ended on March 31…

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

The Income and Expenditure Account shows the stationery consumed during the year, not the amount paid. First the purchases of the year are found from the payment and the creditors, then the stocks are adjusted.

Purchases of stationery
Payments for stationery = ₹23,000
Less: Opening creditors (paid for last year’s purchases) = ₹9,000
Add: Closing creditors (this year’s purchases not yet paid) = ₹2,500
Purchases = ₹16,500

Stationery consumed
Opening stock = ₹4,000
Add: Purchases = ₹16,500
Less: Closing stock = ₹3,000
Stationery consumed = ₹17,500

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):
Some Peculiar Items

Extract from the NCERT textbook

NCERT (Pre-rationalised edition):
Some Peculiar Items – “… 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.”