Question

Calculate amount of medicine consumed for the year 2012.

Opening Stock of Medicines 10,000 Rs

Opening Creditors of Medicines 9,000 Rs

Cash Purchase of Medicines during the year 30,000 Rs

Closing Stock of Medicines 15,000 Rs

Closing Creditors of Medicines 3,000 Rs

Answer 1

Statement showing Medicine expenses

$\begin{array}{ccc}\text{Particulars}& \text{+ Items}& \text{- Items}\\ \text{Cash purchases of medicines during 2012}& & 30,000\\ \text{Add: Opening Stock of medicine}& \underset{–}{10,000}& 10,000\\ & & \overline{40,000}\\ \text{Less: Closing Stock of medicine}& \underset{–}{15,000}& \underset{–}{15,000}\\ \text{Medicine consumed to be shown as expenditure}& & 25,000\end{array}$

As we are given Cash purchases in the question, we should consider only opening & closing stock.