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 ₹17,000
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
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → ₹3,63,000
The cost of medicines consumed is found in two steps: first the purchases of the year (adjusting the payment for creditors and advances), then the consumption (adjusting for opening and closing stock).
Payment to creditors = ₹3,70,000
Add: Closing creditors = ₹17,000
Less: Opening creditors = ₹25,000
Add: Opening advance (goods received this year) = ₹11,000
Less: Closing advance (goods not yet received) = ₹18,000
Purchases = ₹3,70,000 + ₹17,000 − ₹25,000 + ₹11,000 − ₹18,000 = ₹3,55,000
Add: Opening stock = ₹62,000
Less: Closing stock = ₹54,000
Medicines consumed = ₹3,55,000 + ₹62,000 − ₹54,000 = ₹3,63,000
Note: This question is from the pre-rationalised NCERT book. The topic is not there in the latest NCERT book (2026-27), but it is still in the CUET 2026 syllabus, so do not skip it.
NCERT (Pre-rationalised edition):
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