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Accounting Treatment of Consumable Items: Stationery and Sports Material

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  • Last Updated : 13 Jul, 2022
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Stationery:

There is a stock of consumable items, i.e., stationery, sports material, medicine, etc. at the end of the year in a Non-for-Profit Organisation. Expenses incurred by a Non-for-Profit Organisation on any consumable item say, stationery, is generally debited to Income and Expenditure A/c. When stocks (opening and closing) of a stationery item are given, adjustments are made related to purchasing stationery and the cost of stationery consumed. The adjusted amount of stationery consumed is charged(debited) to Income and Expenditure A/c and the Closing Stock is shown in the Balance Sheet.  

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Accounting Treatment of Stationery:

Illustration: 

From the following information, calculate the amount of stationery consumed during the year 2021-22 and show its treatment in books of accounts. The amount paid for stationery during the year was 70,000:

 

Solution: 

 

 

 

 

Sports Material:

Not-for-Profit Organisations like sports clubs have sports material as consumable items which are charged( debited) to Income and Expenditure A/c. Income and Expenditure A/c will show correct Surplus/Deficit when adjusted sports material consumed is debited to the account. Sports material consumed during the year is derived by making adjustments related to the purchase of sports material and the cost of sports material consumed. The Closing Stock of Sports material consumed are shown in the Asset side of the Balance Sheet.

Format:

 

Illustration: 

From the following information, calculate the sports material used for the year ended 2021-2022 and its treatment in books of accounts when the amount paid during the year for sports material was ₹20,000:

 

Solution:

 

 

 

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