Calculate the amount of consumption of medicine from the following information -
Stock of medicine on 1st April 2020 = ₹6,000
Creditors for medicine on 1st April 2020 = ₹4,000
Amount paid to creditors for medicines during 20 - 21 = ₹21,600
Stock of medicine on 31 March 2021 = ₹1,000
Creditors for stationary on 31 March 2021 = ₹3,600
Answer & explanation
Correct answer: option 1
The correct answer is option 1- ₹26,200.
Amount paid to creditors for medicines = ₹21,600
Add : Opening stock of medicine = 6,000
Closing creditors for medicine = 3,600
= (21,600 + 6,000 + 3,600)
= ₹31,200
Less : Closing stock of medicines = 1,000
Opening creditors of medicine = 4,000
= (31,200 - 1,000 - 4,000)
= ₹26,200
This ₹26,200 is consumed medicine that is shown on the debit side of income and expenditure account.