Question

How will the following items be treated while preparing the financial statements of a not-for-profit-organization for the year ended 31^st March, 2019.

	As at 31-3-18 (₹)	As at 31-3-19 (₹)
Creditors for stationery	78,000	50,000
Stock of stationery	62.000	41,000

During 2018-19, payment made to creditors was ₹ 1,80,000.

Answer 1

In the books of …. 
Income & Expenditure A/c 

Dr.	for the year ended 31st March, 2019		Cr.
Expenditure	Amount (₹)	Income	Amount (₹)
To Sports Material (WN 1)	1,73,000

Balance Sheet as at 31^st March, 2019 

Liabilities	Amount (₹)	Assets	Amount (₹)
Creditors for Sports Material	50,000	Stock of Sports Material	41,000

Working Notes:

(1)

Dr.	Stock of Sports Material A/c		Cr.
To balance b/d	62,000	By Income & Expenditure A/c	1,73,000
		(Bal. Fig.)
To Creditors for Sports material a/c	1,52,000	By balance c/d	41,000
	2,14,000		2,14,000

(2)

Dr.	Creditors for Sports Material A/c		Cr.
To Bank A/c	1,80,000	By balance b/d	78,000
(Payment to creditors)		By Stock of Sports Material A/c	1,52,000
		(Purchases made) (Bal. Fig.)
To balance c/d	50,000
	2,30,000		2,30,000