Following information has been provided by M/s Achyut Health Care. You are required to calculate the amount of medicines consumed during the year 2020-21:

Particulars  Amount
Stock of medicines as on April 1, 2020  15,00,000
Creditors for medicines as on April 1, 2020  3,50,000
Stock of medicines as on March 31,2021  10,00,000
Creditors for medicines as on March 31, 2021  4,20,000
Cash purchases of medicines during the year 2020-21  2,00,000
Credit purchases of medicines duringthe year 2020-21  6,00,000

 

Answer

Accounting for Not-for-Profit organizations, Partnership firms and Companies)

STOCK OF MEDICINES ACCOUNT
Particulars Amount Particulars Amount
To Balance b/d 1500000 By Income and Expenditure Account 1300000
To Cash Purchases 200000    
To Credit Purchases 600000 By Balance c/d 1000000
  2300000   2300000

 

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Transcript

Following information has been provided by M/s Achyut Health Care. You are required to calculate the amount of medicines consumed during the year 2020-21: Particulars Amount (₹) Stock of medicines as on April 1, 2020 Creditors for medicines as on April 1,2020 Stock of medicines as on March 31,2021 Creditors for medicines as on March31, 2021 Cash purchases of medicines during the year 2020-21 Credit purchases of medicines duringthe year 2020-21 15,00,000 3,50,000 10,00,000 4,20,000 2,00,000 6,00,000 Answer Amount of medicines consumed during the year 2020-21: Particulars Amount (₹) Cash Purchases of medicines Add: Credit Purchases of medicines Total Purchases Add: Opening Stock Less: Closing Stock Medicines consumed during the year 2,00,000 6,00,000 8,00,000 15,00,000 10,00,000 13,00,00 Alternative Solution: Stock of Medicines A/c Dr. Cr. Particulars Amount(₹) Particulars Amount(₹) Balance b/d Bank A/c Creditors A/c 15,00,000 2,00,000 6,00,000 Income and Expenditure A/c Balance c/d 13,00,000 10,00,000 23,00,000 23,00,000

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CA Maninder Singh is a Chartered Accountant for the past 13 years and a teacher from the past 17 years. He teaches Science, Economics, Accounting and English at Teachoo