Question 3 OR (b)
Sports materials consumed by a not-for-profit organisation
6 marks
- Time to write
- About 12 minutes
- Notes
- Crux notes
Question
Question 3 OR (b) · 6 marksAn NPO supplies the information below for the year ended 31/03/2026: Calculate how much stationary was consumed and present the items in the NPO's financial statements for the year ended 31/03/2026, on the basis of the following informations:
| Particulars | As at 01/04/2025 (Rs) | As at 01/04/2026 (Rs) |
|---|---|---|
| Creditors for the sports materials | 6,900 | 17,700 |
| Stocks of sports equipments | 22,500 | 45,600 |
The payment of creditors amounted to Rs. 85,200 and cash purchases of sports materials amounted to Rs. 24,000.
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 paper asks for "stationary" consumed, but every figure is for sports materials; the answer works out the sports materials consumed. Payments to creditors and cash purchases are separate.
Write it in this order
- Read the data; note exactly what is asked 1 min
- 1 Credit purchases from the creditors 2 marks 3 min
- 2 Sports materials consumed 2 marks 3 min
- 3 Presentation in the financial statements 2 marks 3 min
- Check: arithmetic, units (₹, %), final answer underlined 2 min
Try it first. About 12 minutes for 6 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.
Basis of the answer
The paper asks for "stationary" consumed, but every figure is for sports materials, so the sports materials consumed are worked out. The amount for the year is the opening stock plus the purchases of the year (cash and credit) less the closing stock, the method the DU text uses for stationery. Credit purchases come from the creditors' account; the cash purchases are separate from the payments to creditors.
Creditors for sports materials
| Dr | ₹ | Cr | ₹ |
|---|---|---|---|
| To Bank (paid to creditors) | 85,200 | By Balance b/d | 6,900 |
| To Balance c/d | 17,700 | By Sports materials (credit purchases, balancing figure) | 96,000 |
| 1,02,900 | 1,02,900 |
| Dr | ₹ |
|---|---|
| To Bank (paid to creditors) | 85,200 |
| To Balance c/d | 17,700 |
| 1,02,900 | |
| Cr | ₹ |
| By Balance b/d | 6,900 |
| By Sports materials (credit purchases, balancing figure) | 96,000 |
| 1,02,900 |
Sports Materials Account
| Dr | ₹ | Cr | ₹ |
|---|---|---|---|
| To Balance b/d (stock) | 22,500 | By Income and Expenditure A/c (consumed) | 96,900 |
| To Bank (cash purchases) | 24,000 | By Balance c/d (stock) | 45,600 |
| To Creditors (credit purchases) | 96,000 | ||
| 1,42,500 | 1,42,500 |
| Dr | ₹ |
|---|---|
| To Balance b/d (stock) | 22,500 |
| To Bank (cash purchases) | 24,000 |
| To Creditors (credit purchases) | 96,000 |
| 1,42,500 | |
| Cr | ₹ |
| By Income and Expenditure A/c (consumed) | 96,900 |
| By Balance c/d (stock) | 45,600 |
| 1,42,500 |
Presentation
The consumption is an expense of the year in the Income and Expenditure Account, a nominal account; the closing stock is an asset and the unpaid creditors a liability.
| Statement | Item | ₹ |
|---|---|---|
| Income and Expenditure Account (expenditure) | Sports materials consumed | 96,900 |
| Balance Sheet (assets) | Stock of sports materials | 45,600 |
| Balance Sheet (liabilities) | Creditors for sports materials | 17,700 |
Where the 6 marks sit
| # | Component | Marks |
|---|---|---|
| 1 | Credit purchases from the creditors | 2 |
| 2 | Sports materials consumed | 2 |
| 3 | Presentation in the financial statements | 2 |
| Total | 6 |
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