Multiple choice

An amount of Rs. 35,000 is paid to stationery creditors. Credits at the beginning and end of the year amounted to Rs. 12,000 and Rs. 7000. Stock of stationery at the starting and end of the year was Rs. 2500 and Rs. 4500, respectively. Credit purchase is 75% of total amount of purchase. What will be the amount of stationery shown in income and expenditure account?

  1. Rs. 35,000

  2. Rs. 30,000

  3. Rs. 40,000

  4. Rs. 38,000

  5. Rs. 42,000
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Total credit purchase = 35,000 + 7000 - 12,000 = Rs. 30,000 Total purchase = 30,000 * 100/75 = Rs. 40,000 Stationery expenses to be shown by adding opening stock and subtracting closing stock = 40,000 + 2500 - 4500 = Rs. 38,000

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