Materials transaction, Cost Accounting

Assignment Help:

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


Related Discussions:- Materials transaction

Maginal costing.., fixed expenses are incurred equally in the two half year...

fixed expenses are incurred equally in the two half year periods,calculate

Accounting records - nature and purpose of cost accounting, Accounting Reco...

Accounting Records - Nature and Purpose of Cost Accounting The quantitative information employed in the management and cost accounting systems can be obtained from with two ac

Calculate the cash flows for each alternative, A company is evaluating the ...

A company is evaluating the following lease or buy option. A four year lease with annual payments of $25,000 payable at the beginning of the year.The tax shield is available at

Developing and insight into labour and material variance, Developing and In...

Developing and Insight into Labour and Material Variance The calculation of labour and material variances is not sufficient; we require knowing how the variance could have typ

Basic earnings per share, What are 'potential' ordinary shares?  In your an...

What are 'potential' ordinary shares?  In your answer provide three examples to support your explanation.  Briefly outline the process (steps) to determine whether 'potential' ordi

.., process costing new practices

process costing new practices

Comparison between marginal and absorption costing, Comparison between Marg...

Comparison between Marginal Costing and Absorption Costing There are accountants who favour all costing method. Arguments in favour about absorption costing are specified a

Perform an incremental analysis, Bakers Bagels LLC produces and sells 20 ty...

Bakers Bagels LLC produces and sells 20 types of bagels by the dozen. Bagels are priced at $6.00 per dozen (or $0.50 each) and cost $.020 per unit to produce. The company is consid

Determine the cost that changes in total proportionately, Presented below i...

Presented below is a list of terms relating to cost behavior, followed by definitions of those terms: a. Rent on a factory building b. Engineering approach c. Fixed cost

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd