INVENTORY JOURNAL ENTRIES

This query is : Resolved

Arun Iyer (Querist)
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03 November 2010 DEAR ALL,

I NEED TO KNOW JOURNAL ENTRIES FOR
RAW MATERIAL INWARD TO SALE OF FINISHED STOCK AND SALES RETURN.

WITH SOME OF EXAMPLE.

JOURNAL EFFECT IN BOTH INVENTORY AND VALUE.

WITH THANKS
K A K

S. Karthi

S. Karthi (Expert)
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12 November 2010 1) If Sales Tax not applicable:

Raw Material (Item Name) A/c Dr xxx
To Cash / Bank / Supplier xxx
(Raw Material Purchase with invoice no., date, qty., etc.,)

Cash / Bank / Buyers Dr xxx
To Finished Goods Sales A/c (Item Name) xxx
(Sales of goods vide inv no., date, qty., etc.,)

Finished Goods Sales A/c (Item Name) Dr xxx
To Cash / Bank / Buyers xxx
(Sales Return goods details with Cheque/cash details)

2) If Sales Tax applicable:

Raw Material (Item Name) A/c Dr xxx
Sales Tax (Input Tax) A/c Dr xxx
To Cash / Bank / Supplier xxx
(Raw Material Purchase with invoice no., date, qty., etc.,)

Cash / Bank / Buyers Dr xxx
To Sales Tax (Output Tax) xxx
To Finished Goods Sales A/c (Item Name) xxx
(Sales of goods vide inv no., date, qty., etc.,)

Finished Goods Sales A/c (Item Name) Dr xxx
Sales Tax (Output Tax) A/c Dr xxx
To Cash / Bank / Buyers xxx
(Sales Return goods details with Cheque/cash details)

if can show sales return separately in Trading account by creating separate ledger.

for invetory effect, you need to select each & every time for making purchase & sales entry and sales return also.
finally, inventory only effects quantity only. so, it will able to show present stock position.