Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounts for Non Profit Organsiation

Question:

Find out cost of medicine consumed during 2020-21.
Payment to creditors of medicines             ₹3,70,000
Creditors for medicines purchased:
            On 1.04.2020                                    ₹25,000
            On 31.03.2021                                  ₹17000
Stock of Medicines:
           On 1.04.2020                                     ₹62,000
           On 31.03.2021                                   ₹54,000
Advance to suppliers:
           On 1.04.2020                                    ₹11,000
           On 31.03.2021                                  ₹18,000

Options:

₹3,63,000

₹2,63,000

₹3,36,000

₹2,36,000

Correct Answer:

₹3,63,000

Explanation:

Medicine consumed = Payment to creditors + Opening stock - closing stock - creditors in the beginning +  creditors at the end + advance to suppliers in beginning - advance to suppliers at the end
                              = 3,70,000 + 62000 -54000 - 25000 + 17000 + 11000 - 18000
                              = ₹363000