Question

From the following information , calculate the amount of medicine to be debited to the income and expenditure
account of national Hospital for the year ended 31- march 2018
Opening Stock of medicines Rs. 25,000
Closing Stook of medicines Rs. 5,000 more than opening stock
Opening Creditors Rs. 15,000
Closing Creditors Rs. 28,000
Medicines purchased during the year ended Rs. 1,00,000​

Answer 1

Given :

★ Opening Stock of medicines

• Rs. 25,000

★ Closing Stook of medicines

Rs. 5,000 more than opening stock Opening stock + 5000

• Rs. 30000

★ Medicines purchased during the year ended

• Rs. 1,00,000

To find :

• The amount of medicine to be debited to the income and expenditure account.

Solution :

Medicine purchased during the year is already given, it means creditors are already adjusted in it. Therefore, there's no any treatment for creditors.

→ Amount that's debited to the income and expenditure A/c

→ Opening stock + purchase of medicine - closing stock of medicine

→ 25000 + 100000 - 30000

→ 95000

•°• Required amount = Rs. 95000

Answer 2

Given :-

Opening stock is 25000

Closing stock is 5000 more than opening stock

Medicine purchased = 1,00,000

To Find :-

Amount of medicine

Solution :-

Amount of medicine = Total medicine purchased + Opening stock - Closing stock

Amount of medicine = (100000 + 25000) - (25000 + 5000)

Amount of medicine = 125000 - 30000

Amount of medicine = 95000