Question

The following information pertains of a cultural club:
Stock of tinned provisions(as on 1.4.94): Rs. 25,000
Purchased during the year: Rs. 1,50,000
Stock of tinned provisions (as on 31.3.95): Rs. 50,000
Sale of tinned provisions during the year: Rs. 1,50,000
The amount to be debited and credited respectively to the Income and Expenditure account would be.

• A. Rs. 1,75,000 and Rs. 1,50,000
• B. Rs. 1,25,000 and Rs. 1,75,000
• C. Rs. 1,25,000 and Rs. 1,50,000
• D. Rs. 1,75,000 and Rs. 1,25,000

Answer 1

Answer: (C)

Rs. 1,25,000 and Rs. 1,50,000

Amount that needs to be debited and credited in the Income and expenditure account is stock of tinned provisions consumed and sale of tinned provisions consumed respectively.

Stock of tinned provisions consumed = purchases + opening stock - closing stock

= 1,50,000 + 25000 - 50,000

= Rs-1,25,000,

So, amount to debited is 1,25,000 and credited is 1,50,000.