28 May 2013
one of the small garment factory business is running at remote area. Preparing a income and expenditure account what is the treatment of job work received materials.
28 May 2013
The job work material received by the factory is not a property of the factory. It should not be brought into the books. So, keep a register to record receipt of JW material and consumption of the materials. Do not pass any accounting entry. As you mentioned JW, you dont have to pay for the material and you will get paid for the stitching charges is my assumption.
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