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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 31st 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.
Ledger
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Solution
In the books of ….
Income & Expenditure A/c for the year ended 31st March 2019
| Dr. | Cr. | ||
| Expenditure |
Amount (₹)
|
Income |
Amount (₹)
|
| To Sports Material consumed (WN 1) | 5,35,000 | ||
Balance Sheet as at 31st 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 | ||
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