from the following information calculate the amount that will be shown against Stationery Account in Income and expenditure Account for the year ended 31st March 2019 :

During the year ended 31st March 2019 payment made to creditors amounted to Rs. 56,800. Stationery purchased in cash during the year was 20% of the total purchase of stationery .

Answer

N/a

Explanation

Calculation of Credit Purchases of Stationery

Calculation of Cash Purchases of Stationery ,
Let the total purchases be X
Cash purchases will be 20% of X , i.e., `X//5`
Credit purchases will be 80% of X, i.e., `4X//5`
`X//5 = Rs 64,000 =X`
`4X//5 = Rs 64,000`
X =Rs 64,000 x `5//4` =Rs. 80,000 (Total Purchases)
Cash Purchases = Total Purchases -Credit Purchases
=Rs. 80,000 - Rs 64,000 = Rs 16,000
Stationery Consumed to be debited to Income and Expenditure Account :
Opening Stock of Stationery + Purchases (Credit and Cash)
- Closing Stock of Stationery
=Rs. 15,000 + Rs 64,000 (Credit) +Rs 16,000 (Cash) - Rs 30,400 =Rs 64,600.