Question

How will the following items be treated while preparing the Income and Expenditure Account and Balance Sheet of a Not-for-profit-organization for the year ended 31^st March 2019?

	As at 1-4-2018	As at 31-3-2019
	(₹)	(₹)
Creditors for sports materials	18,000	41,000
Stock of sports materials	27,000	38,000

During 2018-19 the payment made to creditors for sports material was ₹ 5,23,000.

Answer 1

In the books of …. 
Income & Expenditure A/c for the year ended 31^st March 2019

Dr.			Cr.
Expenditure	Amount (₹)	Income	Amount (₹)
To Sports Material consumed (WN 1)	5,35,000

Balance Sheet  as at 31^st March, 2019 

Liabilities	Amount(₹)	Assets	Amount(₹)
Creditors for Sports Material	41,000	Stock of Sports Material	38,000

Working Notes:  

1) 

Dr.	Creditors for Sports Material A/c		Cr.
Particulars	Amount(₹)	Particulars	Amount(₹)
To Bank A/c	5,23,000	By balance b/d	18,000
(Payment to creditors)		By Stock of Sports Material A/c
		(Purchases made) (Bal. Fig.)	5,46,000
To balance c/d	41,000
	5,64,000		5,64,000

2) 

Dr.	Stock of Sports Material A/c		Cr.
Particulars	Amount(₹)	Particulars	Amount(₹)
To Balance b/d	27,0000	By Income & Expenditure A/c	5,35,000
		(Bal. Fig.)
To Creditors for Sports material a/c	5,46,000	By balance c/d	38,000
	5,73,000		5,73,000