At the end of the year, the Supplies account has a balance of Rs. 18,000, while unused supplies physically held are worth Rs. 5,000. What supplies expense should be recognised for the year?
Correct answer: A. Rs. 13,000
- A. Rs. 13,000
- B. Rs. 5,000
- C. Rs. 18,000
- D. Rs. 23,000
Explanation
Supplies used during the year equal the recorded supplies balance less the unused supplies, or Rs. 18,000 minus Rs. 5,000. The expense is therefore Rs. 13,000, and the remaining Rs. 5,000 is an asset.
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