Question :
Amount paid for sports material during the year is Rs.20,000, Stock of sports material at the beginning and end of the year are Rs.3,300 and Rs.2,900 respectively. Creditors for sports material at the beginning and end of the year are Rs.5,000 and Rs.4,000 respectively. The amount to be shown in Income and Expenditure A/c will be:
Option 1: Rs.20,400
Option 2: Rs.19,400
Option 3: Rs.18,600
Option 4: Rs.22,600
Correct Answer: Rs.19,400
Solution : Sports material consumed = Amount paid - Closing stock + Opening stock - Opening creditors + Closing creditors = Rs.20,000 - Rs.2,900 + Rs.3,300 - Rs.5,000 + Rs.4,000 = Rs.19,400. Hence, the correct option is 2.
How much amount will be shown in Income and
Salary paid by Lancer Club for the year is
Salary outstanding in the beginning of the year
Sale of used sports material for Rs.500 by a cricket
Receipts and Payments Account does not include
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile