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 | |||