Question

The following figures (all in Rs.) relate to non-trading concern.
1st January, 1995 stock of medicines 5,000
1st January, 1995 outstanding creditors for medicines 3,000
Amount paid for medicines during the years 15,000
Stock of medicine on 31st December, 1995 is 3,500
The amount to be debited to income and expenditure account would be _________ .

• A. Rs. 15,000
• B. Rs. 18,500
• C. Rs. 18,000
• D. Rs. 13,500

Answer 1

The correct option is D Rs. 13,500

Amount paid for medicine 15000

Add:- Opening stock of medicines 5,000

Less:- closing stock of medicines (1st January) (3500)

outstanding creditors at the beginning of the year (3,000)

________-

medicines consumed during the year 13,500

Hence, the amount to be debited income & expenditure account is $Rs13,500$.