Check my entry ?

Cost Accounts 814 views 5 replies

Mr.C.A

ipcc

173 Points Joined July 2011

calculate the amount of stationery debited to Income and expenditure a/c 31st dec 2005

Amount paid for stationery during 2005 2200

Add advance payment at the end of 2004 100

Add creditors for stationery on 31-12-2005 300

less creditors for stationery on 1-1-2005 300

stationery to be debited to income and expenditure a/c 2300

i got the answer but still have the problem with these entries are confusing why we are adding "creditors as it is made at the end date and please can anybody give me more detail about this subscripttttion dates i am confusing .....please please help me

Replies (5)

ashish gupta

student

1922 Points Joined May 2008

creditors appearing in the end only mean that you have purchased the stationery items during the year and these bills are yet to be paid.

C.A. Sandeep Wawhal

CA PGDFM BCom

1831 Points Joined June 2010

Amount paid during the year - 2200/-

assumed opening payable also included in this hence deducted 300/-

closing account means incured but not paid hence added. 300/-

advance payment of last year is for current year is added again 100/-

the balance amount is your expenses incurred for the year, it is not amount paid but incured so far during the year balance payable is still Rs. 300/-.

Guest

Creditors for Stationery
To	Bal (Advance)	100	By	Bal (o/s)	300
To	Cash	2200	By	Stationery consumed	2300

To	Bal (o/s)	300
		2600			2600

CA. Kunal Lakhotia

ACA

1006 Points Joined May 2010

Originally posted by : Level II
	Creditors for Stationery To Bal (Advance) 100 By Bal (o/s) 300 To Cash 2200 By Stationery consumed 2300 To Bal (o/s) 300 2600 2600