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?

₹64,000

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