Question

The following figures relate to a non-profit organization.
stock of medicines on 1st April 2017 Rs5000; outstanding creditors for medicines on 2st April 2017 Rs3000; medicines purchased during the year Rs12000; value of medicines spoiled during the year Rs400; stock of medicines on March 31 2018 Rs3500.
what amount to be debited to income and expenditure account.​

Answer 1

Answer:

Winding up of a company is defined as a process by which the life of a company is brought to an end and its property administered for the benefit of its members and creditors. In words of Professor Gower, “Winding up of a company is the process whereby its life is ended and its Property is administered for the benefit of its members & creditors. An Administrator, called a liquidator is appointed and he takes control of the company, collects its assets, pays its debts and finally distributes any surplus among the members in accordance with their rights.”