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Question : On the basis of the information given below, calculate the amount of stationery to be debited to Income and Expenditure Account of Hindustan Club for the year ended 31st March, 2020:                   
                                                                        01/04/2019                   31/03/2020

Stock of stationery                                              50,000                           40,000

Creditors for stationery                                     1,00,000                          90,000

Stationery purchases on credit during the year ended 31st March 2020 were Rs 3,50,000.

Option 1: Rs 3,50,000

Option 2: Rs 4,90,000

Option 3: Rs 5,00,000

Option 4: Rs 6,50,0000


Team Careers360 5th Jan, 2024
Answer (1)
Team Careers360 22nd Jan, 2024

Correct Answer: Rs 3,50,000


Solution : Stationery credit purchases during the year  = Rs 3,50,000
(+) Opening stock                                           = Rs.50,000
(-) Closing stock                                             = (Rs.40,000)
(+) Closing creditors                                       = Rs.90,000
(-) Opening creditors                                      = (Rs.1,00,000)
Amount of stationery consumed                    = Rs.3,50,000
Hence, the correct option is 1.

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