Advertisement Remove all ads

From the Following Information of a Not-for-profit Organisation, Show the 'Sports Materials' Item in the Income and Expenditure Account - Accountancy

Ledger

From the following information of a Not-for-Profit Organisation, show the 'Sports Materials' item in the Income and Expenditure Account for the year ended 31st March, 2019 and Balance Sheets as at 31st March, 2018 and 31st March, 2019:

Particulars 31st March, 2018
31st March, 2019
​₹
Stocks of Sports Materials 6,200 4,800
Creditors for Sports Materials 9,800 7,200
Advance to Suppliers for Sports Materials 11,000 19,000

Payment to suppliers for Sports Materials during the year was ​₹ 1,02,000. There were no cash purchases made.

Advertisement Remove all ads

Solution

Extract of Income and Expenditure Account
for the year ended March 31, 2019

Dr.

 

Cr.

Expenditure 

Amount
(₹)

Income

Amount
(₹)

Sports Material Consumed

92,800

 

 

 

Balance Sheet
as on March 2018

Liabilities 

Amount

(₹)

Assets

Amount

(₹)

Creditors for Sports Materials

9,800

Stock of Sports Materials

6,200

 

 

Advance paid for Sports Materials

11,000

 

Balance Sheet
as on March 2019

Liabilities 

Amount
(₹)

Assets

Amount
(₹)

Creditors for Sports Materials

7,200

Stock of Spors Materials

4,800

 

 

Advance paid for Sports Materials

19,000

Working Note:

Calculation of Sports Material Consumed

Particulars 

Amount (₹)

Sports Material

1,02,000

Add: Opening Stock

6,200

Less: Closing Stock

(4,800)

Less: Creditors in the beginning

(9,800)

Add: Creditors at the end

7,200

Less: Advance at the end

(19,000)

Add: Advance in the beginning

11,000

 

92,800

Alternatively, Sports Material consumed can also be calculated as.

Creditors for Sports Material Account

Dr.

 

Cr.

Expenditure 

Amount
(₹)

Income

Amount
(₹)

Balance b/d (Advance in the beginning)

11,000

Balance b/d (Creditors in the beginning)

9,800

Bank A/c (Amount paid for stationery)

1,02,000

Purchases A/c (Balancing Figure)

91,400

Balance c/d (Creditors at the end)

7,200

Balance c/d (Advance at the end)

19,000

 

1,20,200

 

1,20,200

Concept: Preparation of Balance Sheet
  Is there an error in this question or solution?
Advertisement Remove all ads

APPEARS IN

TS Grewal Class 12 Accountancy - Double Entry Book Keeping Volume 1
Chapter 1 Financial Statements of Not for Profit Organisations
Exercise | Q 30 | Page 62
Advertisement Remove all ads
Advertisement Remove all ads
Share
Notifications

View all notifications


      Forgot password?
View in app×