How will you deal with the following items while preparing the Income and Expenditure Account for the year ending on Mar 31, 2008 and a Balance Sheet as on that date.
Case (a)
|
As on Apr 1, 2007 |
As on Mar 31, 2008 |
|
|
Rs |
Rs |
|
|
Creditors for Sports Materials |
3,000 |
1,500 |
|
Stock of Sport Materials |
5,000 |
500 |
During 2007–2008, the payment made to these creditors was Rs 20,750. There was no cash purchase.
Case (b)
|
As on Apr 1, 2007 |
As on Mar 31, 2008 |
|
|
Rs |
Rs |
|
|
Creditors for Sports Materials |
4,000 |
9,000 |
|
Stock of Sport Materials |
10,000 |
25,000 |
During 2007–2008, the payment made to these creditors amounted to Rs 35,000 and cash payments amounted to Rs 10,000.