The Question : Following information has been provided by M/s Achyut Health Care. You are required to calculate the amount of medicines consumed during the year 2020-21:
| Particulars | Amount (₹) |
| Stock of medicines as on April 1, 2020 | 15,00,000 |
| Creditors for medicines as on April 1,2020 | 3,50,000 |
| Stock of medicines as on March 31,2021 | 10,00,000 |
| Creditors for medicines as on March31, 2021 | 4,20,000 |
| Cash purchases of medicines during the year 2020-21Credit purchases of medicines during the year 2020-21 | 2,00,000 6,00,000 |
Solution for the question :
Amount of medicines consumed during the year 2020-21:ParticularsAmount (₹)Cash Purchases of medicines2,00,000Add: Credit Purchases of medicines 6,00,000Total Purchases 8,00,000 Add: Opening Stock15,00,000 Less: Closing Stock10,00,000 Medicines consumed during the year13,00,000 Alternative Solution: Stock of Medicines A/c Dr.ParticularsAmount(₹)ParticularsCrAmount(₹) Balance b/dBank A/cCreditors A/c15,00,000 2,00,000 6,00,000Income and Expenditure A/c Balance c/d13,00,000 10,00,00023,00,000 23,00,000
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