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Question

​How are the following dealt with while preparing the final accounts for the year ended 31st March , 2018?

RECEIPTS AND PAYMENTS ACCOUNT ( AN EXTRACT ) for the year ended 31ST March, 2018

Dr.

Cr.
Receipts

Payments

​By Payments for Sports Material 1,40,000


BALANCE SHEET (AN EXTRACT) as at 1st April, 2017

Liabilities

Assets

Creditors foe Sports Materials 6,000 Sports Materials 8,000


Additional information :
(i) Sports Materials in Hand on 31st March, 2018₹ 22,000

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Solution

Income and Expenditure Account

for the year ended March 31, 2015

Dr.

Cr.

Expenditure

Amount

(Rs)

Income

Amount

(Rs)

Sports Material

1,40,000

Add: Opening Stock

8,000

Less: Closing Stock

(22,000)

Less: Creditors in the beginning

(6,000)

1,20,000

Balance Sheet

as on March 31, 2015

Liabilities

Amount

(Rs)

Assets

Amount

(Rs)

Stock of Sport Materials

22,000

Alternatively, Sports Material consumed can also be calculated as.

Creditors for Sports Material Account

Dr.

Cr.

Expenditure

Amount

(Rs)

Income

Amount

(Rs)

Bank A/c

1,40,000

Balance b/d (Creditors in the beginning)

6,000

(Amount paid for sports materials)

Purchases A/c (Balancing Figure)

1,34,000

1,40,000

1,40,000

Sports Material Consumed = Opening Stock + Purchases – Closing Stock = 8,000 + 1,34,000 – 22,000 = Rs 1,20,000


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