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 will be debited to the income and expenditure account?
Answer & explanation
Correct answer: option 1
The correct answer is option 1- ₹64,600.
Opening stock of stationery = 15,000
Add: Total Purchases = 80,000
Less: Closing stock of stationery = 30,400
Stationery consumed = 15,000 + 80,000 - 30,400
= ₹64,600