Question

​How are the following dealt with while preparing the final accounts for the year ended 31st March, 2019?

RECEIPTS AND PAYMENTS ACCOUNT (AN EXTRACT) for the year ended 31st March, 2019
Dr.				Cr.
Receipts		₹	Payments	₹
			​By Payments for Medicines	1,50,000

 Additional information :

	As at 1st April, 2018 (₹)	As at 31st March, 2019 (₹)
Stock of Medicines	50,000	75,000
Creditors for Medicines	40,000	60,000

Answer 1

Income and Expenditure Account for the year ended March 31, 2019
Dr.						Cr.
Expenditure			Amount (₹)	Income	Amount (₹)
Medicine		1,50,000
Add: Opening Stock		50,000
Less: Closing Stock		(75,000)
Less: Creditors in the beginning		(40,000)
Add: Creditors at the end		60,000	1,45,000

 

Balance Sheet as on March 31, 2018
Liabilities	Amount (₹)	Assets	Amount (₹)
Creditors for Medicines	40,000	Stock of Medicines	50,000

 

Balance Sheet as on March 31, 2019
Liabilities	Amount (₹)	Assets	Amount (₹)
Creditors for Medicines	60,000	Stock of Medicines	75,000