Question

From the following information of a Not-for-Profit Organisation, show the 'Sports Materials' item in the Income and Expenditure Account for the year ended 31st March, 2019 and Balance Sheets as at 31st March, 2018 and 31st March, 2019:

Particulars		31st March, 2018 ₹	31st March, 2019 ​₹
Stocks of Sports Materials		6,200	4,800
Creditors for Sports Materials		9,800	7,200
Advance to Suppliers for Sports Materials		11,000	19,000

Payment to suppliers for Sports Materials during the year was ​₹ 1,02,000. There were no cash purchases made.

Answer 1

Extract of Income and Expenditure Account for the year ended March 31, 2019
Dr.					Cr.
Expenditure		Amount (₹)	Income	Amount (₹)
Sports Material Consumed		92,800

Balance Sheet as on March 2018
Liabilities	Amount (₹)	Assets	Amount (₹)
Creditors for Sports Materials	9,800	Stock of Sports Materials	6,200
		Advance paid for Sports Materials	11,000

Balance Sheet as on March 2019
Liabilities	Amount (₹)	Assets	Amount (₹)
Creditors for Sports Materials	7,200	Stock of Spors Materials	4,800
		Advance paid for Sports Materials	19,000

Working Note:

Calculation of Sports Material Consumed

Particulars	Amount (₹)
Sports Material	1,02,000
Add: Opening Stock	6,200
Less: Closing Stock	(4,800)
Less: Creditors in the beginning	(9,800)
Add: Creditors at the end	7,200
Less: Advance at the end	(19,000)
Add: Advance in the beginning	11,000
	92,800

Alternatively, Sports Material consumed can also be calculated as.

Creditors for Sports Material Account
Dr.					Cr.
Expenditure		Amount (₹)	Income	Amount (₹)
Balance b/d (Advance in the beginning)		11,000	Balance b/d (Creditors in the beginning)	9,800
Bank A/c (Amount paid for stationery)		1,02,000	Purchases A/c (Balancing Figure)	91,400
Balance c/d (Creditors at the end)		7,200	Balance c/d (Advance at the end)	19,000
		1,20,200		1,20,200

Sports Material Consumed = Opening Stock + Purchases – Closing Stock = 6,200 + 91,400 – 4,800 = Rs 92,800