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 2020-21	2,00,000
Credit purchases of medicines duringthe year 2020-21	6,00,000

Answer 1

Amount of medicines consumed during the year 2020-21:

Particulars	Amount (₹)
Cash Purchases of medicines	2,00,000
Add: Credit Purchases of medicines	6,00,000
Total Purchases	8,00,000
Add: Opening Stock	15,00,000
Less: Closing Stock	10,00,000
Medicines consumed during the year	13,00,000

Stock of Medicines A/c

Dr.		Cr.
Particulars	Amount (₹)	Particulars	Amount(₹)
Balance b/d	15,00,000	Income and Expenditure A/c	13,00,000
Bank A/c	2,00,000
Creditors A/c	6,00,000	Balance c/d	10,00,000
	23,00,000		23,00,000

Answer 2

Amount of medicines consumed during the year 2020-21:

Alternative Solution:

Stock of Medicines A/c

Comments

Can you plzz tell me how the 13,00,000 has come

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13,00,000 is the balancing figure in the stock of medicines a/c
And in amount of medicines consumed during the year 2020-21 we have added total purchase (cash+credit) with opening stock and then Subtracted the closing stock

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23,00,000-10,00,000=1300000