​Amount paid for stationery during 2022-23 80,000
Creditors for Stationery on March, 31, 2023 7,200
Stationery spoiled during the year 2022-23 2,400
Stock of Stationery on March 31, 2023 8,000
How much amount of Stationery will be shown in the Income & Expenditure Account for the year ended on March 31, 2023?​

Correct option is C

The correct answer is (c) ₹76,800

Explanation:
• Amount paid for stationery = ₹80,000
• Add: Creditors (outstanding stationery) = ₹7,200
→ Total stationery incurred = ₹87,200
• Less: Closing stock of stationery = ₹8,000
• Less: Spoiled stationery = ₹2,400
→ Stationery expense = ₹87,200 – ₹10,400 = ₹76,800

Information Booster:
• Income & Expenditure Account follows the accrual concept of accounting.
• Expenses are recorded for the period they relate to, not when paid.
• Spoiled or damaged items are excluded as they do not provide benefit.
• Closing stock is treated as an asset in the Balance Sheet.
• Outstanding expenses are added to the total expenses of the year.

Additional Knowledge:
• The Income & Expenditure Account is similar to the Profit & Loss Account but used by non-profit organizations.
• Stationery Expense represents items consumed during the accounting year.
• Prepaid expenses, if any, are deducted from total expenses.
• This method ensures accurate matching of costs and revenues for the period.