Read the following information about a Non profit organisation for the year ended 31st March,2019 and answer the question.
Creditors for stationery on 1st April,2018 = ₹4,600
Creditors for stationery on 31st march,2019 = ₹11,800
Opening stock of stationery = ₹15,000
Closing stock of stationery = ₹30,400
During the year ₹56,800 is paid to creditors.
Stationery purchased in cash during the year was 20% of the total purchase of stationery.
What amount of stationery is purchased on credit?
Answer & explanation
Correct answer: option 3
The correct answer is option 3- ₹64,000.
Payment made to creditors = 56,800
Add: closing creditors = 11,800
Less: Opening creditors = 4,600
Stationery purchased on credit = 56,800 + 11,800 - 4,600
= 64,000
CREDITORS ACCOUNT
| PARTICULARS | AMOUNT (₹) | PARTICULARS | AMOUNT (₹) |
| To Bank A/c (Payment to creditors) |
56,800 | By balance b/d | 4,600 |
| By balance c/d | 11,800 | By purchases (balancing fig) |
64,000 |
| 68,600 | 68,600 |