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Inventory Accounting Entries

The document describes various inventory accounting entries for different transactions. When goods are received, the stock account is debited and the goods receipt invoice register account is credited. When goods are issued for production, the consumption of raw materials account is debited and the stock account is credited. When goods are produced and received from production, the inventory account is debited and the cost of goods produced account is credited, with any price differences also posted.

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Lokesh Dora
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80 views

Inventory Accounting Entries

The document describes various inventory accounting entries for different transactions. When goods are received, the stock account is debited and the goods receipt invoice register account is credited. When goods are issued for production, the consumption of raw materials account is debited and the stock account is credited. When goods are produced and received from production, the inventory account is debited and the cost of goods produced account is credited, with any price differences also posted.

Uploaded by

Lokesh Dora
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Inventory Accounting Entries All the Inventory transactions will look for the valuation class and thecorresponding

G.L. Accounts and post the values in the G.L accounts. For Example: during Goods ReceiptStock Account - DrG/R I/R Account - CrFreight Clearing account - CrOther expenses payable - CrDuring Invoice VerificationG/R I/R Account - DrVendor - Cr When the Goods are issued to the Production Order the followingtransactions takes place: Consumption of Raw Materials - DrStock A/c - Cr When the Goods are received from the Production Order the followingtransactions takes place: Inventory A/c - DrCost of Goods Produced - CrPrice difference - Dr/Cr(depending on the difference between standard cost and actual cost) When the Goods are dispatched to customer through delivery the followingtransactions takes place: Cost of Goods Sold - DrInventory A/c - Cr When the Goods are issued to a Cost Center or charged off againstexpenses the following transactions takes place: Repairs and Maintenance - DrInventory A/c - C

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