Question

On the basis of the information given below calculate the amount of Stationery to be debited to the 'Income and Expenditure Account' of Good Health Sports Club for the year ended 31st March 2017 :

$\begin{array}{ccc}& \text{Apirl 1, 2016}& \text{March 31, 2017}\\ \text{Stock of Stationery}& 8,000& 6,000\\ \text{Creditors for Stationery}& 9,000& 11,000\end{array}$

Stationery purchased during the year ended 31-3-2017 was Rs 47,000.

Answer 1

Income and Expenditure Account
for the year ending 31st March, 2017 Dr. Cr.
$\begin{array}{ccccc}\text{Expenditure}& & \text{Rs}& \text{Income}& \text{Rs}\\ \text{Stationery consumed :}& & & & \\ \text{Purchases of}& & & & \\ \text{Stationery during}& & & & \\ \text{the year 2016-17}& 47,000& & & \\ \text{Add : Stock in the}& & & & \\ \text{beginning}& \underset{–}{8,000}& & & \\ & 55,000& & & \\ \text{Less : Stock at the end}& \underset{–}{6,000}& 49,000& & \end{array}$

Note : Creditors for Stationery will be ignored because stationery purchased (and not the amount paid for stationery) during the year is given in the question.

Alternate Solution :

Stock of Stationery Account Dr. Cr.
$\begin{array}{cccc}& \text{Rs}& & \text{Rs}\\ \text{Balance b/d}& 8,000& \text{Income}\&\text{Expenditure A/c}& \\ \text{Creditors for Stationery A/c}& & \text{(Balancing figure, being}& \\ \text{(Stationery purchased)}& 47,000& \text{stationery consumed during}& \\ & & \text{the year 2016-17)}& 49,000\\ & & \text{Balance c/d}& 6,000\\ & \underset{–}{\overline{55,000}}& & \underset{–}{\overline{55,000}}\end{array}$