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
First In First Out or FIFO Method - Work in Progress This method considers merely those costs incurred throughout the recent period.  Equivalent units are calculated given a

Given the below information, what are the values for COGS and ending inventory for each costing method below?   Number of Units Price per Unit

Partner A (50%) Partner B (50%) sharing profits equally New partner introduced $13,000 total cash including $3000 as goodwill which is raised to its full value. Partner C

Vince's Pizza delivers pizzas to dormitories and apartments near a major state university. The company's annual fixed costs are $48,000. The sales price averages $9, and it costs t

Q. Given the below, partial bond accretion table, what was the market rate of interest when the bond was issued?     Cash     Interest

Suppose that you are the chief financial officer at Porter Memorial Hospital.  The CEO has asked you to analyze two proposed capital investment-Project X and Project Y.  Every proj

Make-or buy and relevant costs - The assembly division of Davenport, Inc., is bidding on an order of 50,000 smart phones. The division is eager to get this order because it has a s

Controllable and Non Controllable Costs Controllable costs can be influenced on the level of authority at that they are being analyzed when non-controllable costs cannot.

Current assets 180.00   232.00 Less: Current Liabilities 80.00   105.00 Working Capital

Please complete the following 7 exercises below in either Excel or a word document (but must be single document). You must show your work where appropriate (leaving the calculation