From the following information, determine the amount to be credited to stationery Account in Income and Expenditure Account for the year ended 31st March 2020:
Rs.
Stock of stationery on 1st April, 2019 30,000
Creditors for stationery on 1st April 2019 20,000
Amount paid for stationery on 31st March 2020 1, 08,000
Stock of stationery on 31st March 2020 5,000
Creditors for stationery on 31st March 2020 13,000
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Given:
- Opening stock - Rs 30,000
- Opening creditors - Rs 20,000
- Amount paid for stationery during the year - Rs 1,80,000
- Closing stock - Rs 5,000
- Closing creditors for stationery - Rs 13,000
To find: The amount to be credited to the Income & Expenditure Account.
Answer:
To calculate the amount to be transferred to an Income & Expenditure Account,
Amount paid during the year + Opening stock - Closing stock - Opening creditors + Closing creditors + Opening advances - Closing advances
As per the question given to us,
Amount to be transferred to the I&E account = Amount paid during the year + Opening stock - Closing stock - Opening creditors + Closing creditors
Amount to be transferred to the I&E account = Rs 1,08,000 + Rs 30,000 - Rs 5,000 - Rs 20,000 + Rs 13,000
Amount to be transferred to the I&E account = Rs 1,26,000
Therefore, the amount to be transferred to the I&E account is Rs 1,26,000.
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