Question

The following information is provided by a club
Stock of sports goods = Rs.20,000
Purchase of sports goods During the year = Rs.80,000
Sports goods sold as scrap = Rs.500
Closing balance = Rs.30,000
The amount to charged to Income and Expenditure Account will be:

• A. Rs. 69,000
• B. Rs. 70,000
• C. Rs. 70,500
• D. Rs. 80,000

Answer 1

The correct option is B Rs. 70,000

Amount to be charged to Income and Expenditure Account:-

Stock of sports goods = 20,000

Add:- Purchases of goods = 80,000

Less:- Closing balance of sports goods = (30,000)

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Stock of sports goods consumed = 70,000.