Question

From the following information calculate the amount of sports material that will be debited to Income and Expenditure Account of Sharda Club for the year ended 31-03-2019.

Particulars	1-4-2018	31-3-2019
	(₹)	(₹)
Stock of Sports material	2,00,000	2,50,000
Creditors for sports material	3,50,000	2,90,000
Advance paid for sports material	70,000	1,10,000

Additional Information:

Cash purchase of sports material during the year was ₹ 1,79,000. ₹ 2,40,000 were paid to the creditors of sports material during the year.

Answer 1

Sharda Club
Dr.	Income and Expenditure Account			Cr.
Expenditure	(₹)	(₹)	Income	(₹)
To Sports materials consumed:
Opening Stock	2,00,000
Add: Cash Purchases	1,79,000
Add: Payment to Creditors	2,40,000
	6,19,000
Less: Closing Stock	2,50,000
	3,69,000
Less: Opening Creditors	3,50,000
	19,000
Add: Closing Creditors	2,90,000
	3,09,000
Add: Opening Advance	70,000
	3,79,000
Less: Closing Advance	1,10,000	2,69,000

Answer 2

Alternate Method:

Sharda Club
Dr.	Income and Expenditure Account			Cr.
Expenditure	(₹)	(₹)	Income	(₹)
To Sports materials consumed:
Opening Stock	2,00,000
Add: Cash Purchases	1,79,000
Add: Credit Purchases (WN)	1,40,000
	5,19,000
Less: Closing Stock	2,50,000	2,69,000

Working Notes:

Dr.	Creditors for Sports Materials A/c		Cr.
Particulars	Amount (₹)	Particulars	Amount (₹)
To Balance b/d (Opening Advance)	70,000	By Balance b/d (Opening creditors)	3,50,000
To Bank A/c (Paid to creditors)	2,40,000	By Purchases A/c credit purchases (Balancing figure)	1,40,000
To Balance b/d (Closing creditors)	2,90,000	By Balance c/d (Closing Advance)	1,10,000
	6,00,000		6,00,000