alleryStationery purchased ₹8,000; opening stock ₹2,000; closing stock ₹3,000. I&E debit:
A₹8,000 cash paid only
B₹7,000 net consumption
C₹9,000 with closing
D₹6,000 with both
Answer & Solution
Correct answer: B. ₹7,000 net consumption
1. Stationery consumed = Opening + Purchases − Closing.
2. = 2,000 + 8,000 − 3,000 = ₹7,000.
3. ₹7,000 debited to I&E; ₹3,000 closing shown as current asset.
_Source: ICAI BoS Foundation Paper 1, Ch 8 "NPO", §3 stock adjustments_
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