Question

The following information is provided by a cultural club.
Sports of sports goods: Rs. 20,000
Purchase of sports goods during the accounting period : Rs. 80,000
Sports goods sold as scrap : Rs. 500
Closing balance : Rs. 30,000
The amount to be charged to Income and Expenditure Accounts as sports goods consumed will be.

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

Answer 1

The correct option is A Rs. 69,500

Amount to be charged to Income and expenditure account is:-

Opening stock of sports material 20.000

Add:- Purchases of sports material 80,000

Less:- Closing stock of sports material (30,000)

Sports material sold as scrap (500)

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stock of sports material consumed 69,500