How will you deal with the following item while preparing the Income and Expenditure Account for the year ending on March 31, 2016, and a Balance sheet as on that date in cash of the following case?
As at 1-4-2015As at 31-3-2016(Rs)(Rs)Creditors for sports materials2,0001,300Stock of sports materials3,000 500
AN EXTRACT OF INCOME AND EXPENDITURE ACCOUNT
for the year ending on 31st March, 2016
Dr. Cr.
ExpenditureAmountIncomeAmount(Rs)(Rs)Sports Material Consumed12,000
AN EXTRACT OF BALANCE SHEET
as at 31st year March, 2016
LiabilitiesAmountAssetsAmount(Rs)(Rs)Creditors for Sports Materials1,300Stock of Sports Materials500
Working Notes :
(i) CREDITORS FOR SPORTS MATERIALS ACCOUNT
Dr. Cr.
ParticularsAmountParticularsAmount(Rs)(Rs)Bank A/c10,800 Balance c/d2,000Balance b/d1,300 Stock of sports Materials A/c(Credit purchases)(Balancing figure)10,100––––––––¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯12,10012,100
(ii) STOCK OF SPORTS MATERIALS ACCOUNT
Dr. Cr.
ParticularsAmountParticularsAmount(Rs)(Rs) Balance b/d 3,000Income and Expenditure A/c Creditors for sports Materials10,100(sports materials consumed)(transfer)(Balancing figure) 12,600Balance c/d 500–––––––¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯13,10013,100