Question 25 Chapter 1 of +2-A - T.S. Grewal 12 Class Part

Question 25 Chapter 1 of +2-A

Table of Contents

The solution of Question 25 Chapter 1 of +2-A: –

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

25. Calculate the amount that will be posted to the Income and Expenditure Account for the year ended 31st March 2019:

The stock of Stationery on 1st April 2018	30,000
Creditors for Stationery on 1st April 2018	20,000
Advance paid for Stationery carried forward from the year ended 31st March 2018	2,000
Amount paid for Stationery during the year ended 31st March 2019	1,08,000
Stock off Stationery on 31st March 2019	5,000
Creditors for Stationery on 31st March 2019	13,000
Advance paid for Stationery on 31st March 2018	3,000

The solution of Question 25 Chapter 1 of +2-A: –

Statement Showing stationery used during the year
Particular	Details	Amount
Amount paid for stationery during the year ended 31st March 2019		1,08,000
Add: – Opening Stock of Stationery	30,000
Closing Creditors for Medicines	13,000
Opening Advance paid for Stationery	2,000	45,000
		1,53,000
Less: – Closing Stock of Medicines	5,000
Opening Creditors for Stationery	20,000
Closing Advance paid for Stationery	3,000
		28,000
The amount for Medicine debited to the Income and Expenditure A/c		1,25,000

Note: Opening balance of advance paid for the purchase of stationery is added in the total amount paid because this amount had shown as an advance in last year balance sheet it means that the items of stationery are delivered against this amount in the current year. So we can use these items in the current year so that’s why this is the expenditure of the current year rather than the previous year. And the closing balance of advance paid is treated opposite of opening balance.