Question

From the following information, calculate the amount of sports material that will be debited to the Income and Expenditure Account of Bright Sports Club for the year ended 31.3.2019.

Particulars	1st April, 2018 (₹)	31st March, 2019 (₹)
Stock of Sports Material	1,10,000	1,50,000
Creditors for Sports Material	25,000	60,000
Advance paid for Sports Material	25,000	70,000

Additional Information:

Cash purchase of sports material during the year was ₹ 2,50,000. ₹ 1,50,000 were paid to the creditors of sports material.

Answer 1

Bright Sports Club Income and Expenditure Account For the year ending 31st March, 2019
Expenditure	Amount (₹)	Amount (₹)	Income	Amount (₹)
To Sports Materials Consumed:
Opening Stock	1,10,000
Add: Cash Purchases	2,50,000
Add: Credit purchases	1,40,000
	5,00,000
Less: Closing Stock	1,50,000	3,50,000

Working Note:

Dr.	Creditors for Sports Materials Account		Cr.
Liabilities	Amount (₹)	Assets	Amount (₹)
To Advance Payment of 2018	25,000	By Balance b/d	25,000
To Bank A/c (Payment)	1,50,000	By Purchases A/c (Bal. Figures)	1,40,000
To Balance c/d	60,000	By Advance Payment	70,000
	2,35,000		2,35,000