Question

On the basis of information given below, calculate the amount of medicines to be debited to the Income and Expenditure Account of Good Health Hospital for the year ended 31st March, 2018:
Medicines purchased during the year ended 31st March, 2018 were ₹ 60,80,700.

Answer 1

Explanation:

From the stock purchase made during the year the opening stock has to be added and closing stock has to be deducted to find the amount spend on the medicines purchased by the hospital.

Answer 2

I have attached the solution. I have done it in account format you can also do it in statement format