Question : Amount paid for the Stationary during the year Rs. 40,000; stock of stationary at the beginning and end of the year Rs. 6,600 and Rs. 5,800 respectively; creditors for sports materials at the beginning and end of the year Rs. 10000 and Rs. 8000 respectively. What amount will be recorded in Income and Expenditure Account?

Option 1: Rs. 40,800

Option 2: Rs. 38,800

Option 3: Rs. 38,000

Option 4: Rs. 40,000


Team Careers360 15th Jan, 2024
Answer (1)
Team Careers360 19th Jan, 2024

Correct Answer: Rs. 38,800


Solution :

Amount paid for Sports material purchased during 2021-22 40000
Less: Creditors for Sports material on 1-4-2021 10000
Add: Creditors for Sports material on 31-3-2022 8000
Sports material purchased during the year 38000
Add: Stock of Sports material on 1-4-2021 6600
Less: Stock of Sports material on 31-3-2022 5800
Amount to be shown in Income and Expenditure Account 38800

Hence, the correct option is 2.

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