Question

Calculate the amount of sports material to be transferred to Income and Expenditure account of Raman Bhalla Sports Club, Ludhiana, for the year ended 31st March, 2018:

| | Particulars | Amount(Rs.) |
| i. | Sports Material sold during the year (Book Value Rs.50,000) | 56,000 |
| ii | Amount paid to creditors for sports material | 91,000 |
| iii. | Cash purchase of sports material | 40,000 |
| iv. | Sports material as on 31.3.17 | 50,000 |
| v. | Sports Material as on 31.3.18 | 55,000 |
| vi. | Creditors for sports material as on 31.3.17 | 37,000 |
| vii | Creditors for sports material as on 31.3.18 | 45,000 |

Answer 1

Calculation of amount of sports material to be transferred to Income and Expenditure Account of Raman Bhalla Sports Club, Ludhiana for the year ended on 31st March, 2018.

| Particulars | Amount (Rs.) |
| Payment to creditors of sports material | 91,000 |
| Add: Closing creditors of sports material | 45,000 |
| Less: Opening creditors of sports material | (37,000) |
| Add: Cash purchases of sports material | 40,000 |
| Total purchases | 1,39,000 |
| Less: Sports material sold during the year (Book Value) | (50,000 |
| Add: Opening stock of sports material | 50,000 |
| Less: Closing stock of sports material | (55,000) |
| Amount to be shown to Income and Expenditure Account | 84,000 |