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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
 


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


Accountancy
TS Grewal Vol. II (2018)
Standard XII

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