Question 4 (d)
Club: sports materials consumed
2 marks
- Time to write
- About 4 minutes
From an older CBCS paper
Question
Question 4 (d) · 2 marks7.HIMALAYA CLUB, which also runs a Restaurant, gives you the information below:
- BALANCES, OPENING AND CLOSING
| Particulars | As on 1.4.2020 ₹ | As at 31.3.2021 ₹ |
|---|---|---|
| Furniture | 3,30,000 | ? |
| Sports Equipment | 3,30,000 | ? |
| China Glass, Cutlery etc., | 37,500 | ? |
| 6% Govt. Securities [Face value ₹ 4,50,000] | 3,75,000 | ? |
| Stock of Sports Materials | 4,500 | 750 |
| Advances to Suppliers of Sports Materials | 1,500 | 750 |
| Due to Suppliers of Sports Materials | 4,500 | 2,700 |
| Stock of Stationery | 3,000 | ? |
| Unpresented cheques (payment for stationery) | 1,350 | 450 |
| Subscription Outstanding | 7,125 | 5,250 |
| Subscription Received-in-Advance | 2,100 | 3,900 |
| Outstanding Miscellaneous Expenses | 7,125 | 5,250 |
| Miscellaneous Expenses paid in advance | 2,100 | 3,900 |
| Outstanding Wages | 7,500 | 6,000 |
| Cash Balance | 15,000 | 45,000 |
| Bank Balance (as per Pass Book) | 7,50,000 | ? |
| Stock of Provisions | 45,000 | 5,70,000 |
| Debtors for Provisions | 45,000 | 60,000 |
| Creditors for Provisions | 1,50,000 | 75,000 |
PAYMENTS: Suppliers of Sports Materials ₹ 16,200,Miscellaneous Expenses ₹ 1,11,675,Wages ₹ 76,500,Stationery ₹ 2,400, Furniture (Purchased on 1.10.2020) ₹ 2,25,000,Sports Equipment (purchased on 1.10.2020) ₹ 2,25,000,8% R.B.I Tax Free Bonds (bought on 1.1.2021) [Face Value ₹ 1,50,000] ₹ 1,18,800,Creditors for Provisions ₹ 15,75,000,Cash Purchases of Provisions – 1/11th of all Purchases.
RECEIPTS: Subscription ₹ 1,11,675,Interest on 6% Govt. Securities (After T.D.S. @ 10%) ₹ 12,150,Collection from Debtors for Provisions ₹ 13,35,000,Cash Sales of Provisions –10% of all Sales
4.Other Information:Rates of Depreciation:On China Glass & Cutlery, 20%, On Furniture, 10% p.a., and On Sports Equipment, 10%. The boarding expenses cost ₹ 41,250(₹ 30,000 of it for Restaurant staff).. Furniture with a book value of ₹ 30,000 as on 1.4.2020 was then sold, at a loss of 20%, on 31.12.2020.Write off 25% of Stationery.
Answer:
- For the year ending on march 31, 2021, calculate the sports materials consumed to be debited to the income and expenditure account.[2 marks]
[Note:Financial Statements in detail need not be prepared.]
Reworded from the university paper: names and figures differ, the task is the same. The original paper belongs to the University of Delhi. See DU's question bank.
Before you write
Read off the question and its marks
Read from the question
- calculateFormula first, then the working, then the answer with its unit (₹, %, units).
What the paper leaves open
- The boarding expenses for restaurant staff are charged to the restaurant.
- Stationery: 25% of the stationery available is written off as consumed; the unpresented cheques are payments already in the cash book, and the bank balance at the year end is reconciled from the pass book.
- "7." before the club's name is kept as printed.
Write it in this order
- 1 Purchases 1 mark 2 min
- 2 Consumption 1 mark 2 min
Try it first. About 4 minutes for 2 marks. Write it out, then open the solution.
Solution
Hover or tap a marked figure, like 72,000, to see how it is made and where else it appears.
Purchases of sports materials (from the suppliers' account)
| Particulars | ₹ |
|---|---|
| Paid to suppliers | 16,200 |
| Less: due to suppliers at 1.4.2020 (paid this year) | 4,500 |
| Add: due to suppliers at 31.3.2021 | 2,700 |
| Add: advances at 1.4.2020 (goods received this year) | 1,500 |
| Less: advances at 31.3.2021 (goods not yet received) | 750 |
| Purchases for the year | 15,150 |
| Particulars | ₹ |
|---|---|
| Opening stock of sports materials | 4,500 |
| Add: purchases | 15,150 |
| Less: closing stock | 750 |
| Sports materials consumed (debited to the I&E Account) | 18,900 |
Consumption, not the cash paid, is the year's expense (as with stationery, opening stock + purchases − closing stock), since the I&E Account takes only the revenue items of the year.
Where the 2 marks sit
| # | Component | Marks |
|---|---|---|
| 1 | Purchases | 1 |
| 2 | Consumption | 1 |
| Total | 2 |
Report a problemopens an email to admin@getkunji.com with the question IDFAH21-Q4dalready filled in.