Materials transaction, Cost Accounting

Materials Transaction

i. Purchase of Materials on Credit

ii. Return of Materials to Suppliers

iii. Purchase of Materials in Cash.

The above transactions affect both the cost accounts and financial accounts and the entries in the two sets of books will shows as given as:

 In the Financial Books

 In the Costing Books

 Purchases on Credit:

 

                               Dr Purchases a/c

 Dr Stores Ledger Control a/c

                              Cr Creditors a/c

 Cr General Ledger Adjustment a/c

 Return of Materials to Suppliers

 

                               Dr Creditors

 Dr. General Ledger Adjustment a/c

                              Cr. Purchases a/c

 Cr. Stores Ledger Control a/c

 Purchases of Materials in Cash

 

                               Dr. Purchases a/c

 Dr. Stores Ledger Control a/c

                               Cr. Cash a/c

 Cr. General Ledger Adjustment a/c

The given entries of material transactions affect merely the cost books since they are simply transfers in the cost ledger.

Issue of Materials to Production

Dr. Work in Progress Ledger Control a/c

Cr. Stores Ledger Control a/c

Posted Date: 2/5/2013 8:10:32 AM | Location : United States







Related Discussions:- Materials transaction, Assignment Help, Ask Question on Materials transaction, Get Answer, Expert's Help, Materials transaction Discussions

Write discussion on Materials transaction
Your posts are moderated
Related Questions
You are given the following information about a sole trader as at 1 January 2012: The value of assets and liabilities were: Non-current assets at net book value £16,800

how can a poorly controlled budget cause problesm for a business?

Calculate the range of monthly financing rates for which the schedule of monthly cash flows is profitable: Month Cash Flow, $ -------------------- 0 -10,100 1 +23,000 2 -13,

Operation and Design of Cost Accounting Systems A number of features should be taken into account previously to finalizing the design of a cost and management accounting syste

I'm having a hard time with this, can you please help? I know the dates are imparative also in finding the solution. Stevens purchased an auto on Jan 1, 2001. On December 31, 2003

Your client has asked you to evaluate an investment project for her using what you have learned in school regarding the net present value method. The project will run for eight yea

2012                     2011 Cash                               12200                 17700 Acct receivable                  25200                  22300 Investments

How the FIFO, LIFO and AW problems can be solved?

WORKED EXAMPLES OF EXPECTED CASH COLLECTIONS PATTERNS