Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Accounts for Non Profit Organsiation

Question:

Stock of medicines on 1.4.2022 were ₹10,000. Medicines purchased during the year is ₹10,000. Closing stock of medicines on 31-3-2023 are ₹6,000. Consumption of medicines debited to Income & Expenditure Account is.......

Options:

₹5,000

₹10,000

₹6,000

₹14,000

Correct Answer:

₹14,000

Explanation:

The correct answer is option 4- ₹14,000.

Medicine consumed = Opening stock + purchases - closing stock
                             = 10,000 + 10,000 - 6,000
                             = 14,000

This 14,000 is shown on the debit side of income and expenditure account.