Question

Calculate the sports material to be debited to Income & Expenditure A/c for the year ended 31/3/2007 on the basis of the following information. Amount paid for sports material during the year was Rs. 19,000. Stock of sports material on 1/4/2006 was 7,500 and stock of sports material as on 31/3/2007. Creditors for sports material on 1/4/2006 were 2000 and Creditors for sports material on 31/3/2007 were 2,600.

Answer 1

Correct question:

Calculate the sports material to be debited to Income & Expenditure A/c for the year ended 31/3/2007 on the basis of the following information:

• Amount paid for sports material during the year was Rs. 19,000.
• The stock of sports material on 1/4/2006 was 7,500 and the stock of sports material on 31/3/2007 was Rs 6,400.
• Creditors for sports material on 1/4/2006 were 2000 and creditors for sports material on 31/3/2007 were 2,600.

Given data:

• The amount paid for the year was Rs 19,000.
• The opening stock was Rs 7,500.
• The closing stock was Rs 6,400.
• The opening creditors was Rs 2,000.
• The closing creditors was Rs 2,600.

To find: The sports material consumed/to be debited.

Answer:

Material consumed/Amount of material to be debited = Amount paid for the year + Opening stock - Closing stock - Opening creditors + Closing creditors.

Substituting the given values in the formula,

Material consumed/Amount of material to be debited = Rs 19,000 + Rs 7,500 - Rs 6,400 - Rs 2,000 + Rs 2,600

Material consumed/Amount of material to be debited = Rs 20,700

Therefore, the sports material to be debited to the Income & Expenditure A/c is Rs 20,700.

$\begin{array}{|c|c|c|c|}\cline{1-4}\bf Expenditure & \bf Rs & \bf Income & \bf Rs\\\cline{1-4}\sf Amount\ paid\ for\ item & xx & &\\ Add: \sf Op ening\ stock & xx & &\\ Less: \sf Closing\ stock & xx & &\\ Add: \sf Closing\ creditors & xx & &\\ Less: \sf Ope ning\ creditors & xx & &\\ Add: \sf Advance\ at\ the\ beginning & xx & &\\ Less: \sf Advance\ at\ the\ end & xx & &\\\cline{1-4} & \bf xx & & \\\cline{1-4}\end{array}$

If purchases have been mentioned, there isn't a need to consider the advances and creditors. But if the amount paid is given, you'll need to consider all the items in the extract.

Answer 2

Answer:

The answer is Rs 20,700.

Explanation:

i) Following data is given:

Amount paid at the end of the year = Rs 19,000.

Opening stock = Rs 7,500.

Closing stock = Rs 6,400.

Opening creditors = Rs 2,000.

Closing creditors = Rs 2,600.

ii) Sports material to be debited

= Amount paid at the end of the year + (opening stock - closing stock) - (Opening creditors - Closing creditors)

= 19,000 + (7500-6400) - (2000-2600)

= Rs 20,700

iii) Hence, the sports material to be debited to Income & Expenditure A/c is Rs. 20,700.

#SPJ2