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
Purchase of office supplies.

NSC Ltd. has a 31 May fiscal year-end. NSC disposed of its Information Systems Group (ISG) on 31 January 20X3. ISG had a net loss (after taxes) of $37,700,000 in 20X3, to the date

Stores layout and location - Material Handling The layout of stores must ensure as a) For movement of material, ease of access out and in of stores b) The issue of peris

Budgetary Planning and Control - Accounting Techniques A budget is a   plan of action expressed in monetary terms. Therefore it is a quantified plan of what one intends to do.

MARGINAL COSTING IS PREFERRED TO ABSORPTION COSTING IN DECISION MAKING WHY

Ed Mettway was concerned about his firm''s ability to acquire the necessary property, plant, and equipment to take advantage of steadily increasing sales. Touring Enterprises, esta

XYZ Inc. plans to raise $5,000,000 external financing through issuing bonds, and is considering two options: regular bonds and zero couple bonds.  The regular bonds will have coupo

standard hours = 5000 standard wages = Rs.3/hr actual hours worked = 5600 hrs actual wages paid = 17920

what is labour

Allocation of Service Department Costs Allocation of Service Department Costs to Production departments ,Service departments are those departments that provide support to prod