Question

From the following information of Lions' Club, Show the sports material items in the Income and Expenditure Account for the year ending 31-03-2018.

$\begin{array}{ccc}& & \\ & 2017\left(Rs\right)& 2018\left(Rs\right)\\ \text{Sports Material}& 22,000& 58,000\\ \text{Creditors for Sports Material}& 78,000& 92,000\\ \text{Advance to Suppliers for Sports Material}& 15,000& 25,000\\ \text{Payment to suppliers for the sports material during the year war Rs. 1,20,000.}& & \end{array}$

Answer 1

$\begin{array}{cccc}\text{Expenditure}& \text{Amount}& \text{Income}& \text{Amount}\\ & \text{(Rs)}& & \text{(Rs)}\\ \text{To Sports Material Consumed (Note 1)}& 88,000& & \end{array}$

Working Note:

Cost of Sports Material Consumed = Opening Stock + Purchases - Closing Stock

= 22,000 + 1,24,000* - 58,000

= Rs. 88,000

* Purchases = Closing Balance of Creditors + Opening Balance of Advance of Creditors + Amount paid to Creditors - Opening Balance of Creditors- Closing Balance of Advance of Creditors

= 92,000 + 15,000 + 1,20,000 - 78,000 - 25,000

=Rs. 1,24,000