NANDURI RAVI SURYA NARAYANA MU (ACCOUNTANT) (194 Points)
04 July 2008
Respected Sir/Madam
I am seeking clarity for inventory entries. Given below i am giving some accounting entries relates to inventory items
PURCHASE A/C DR
TO BANK/CASH/SUPPLIER
2. INVENTORY - RAW MATERIAL A/C. DR
TO PURCHASES
May i right or worng other please guide me in this respective area.
Virendra
(Job)
(20 Points)
Replied 05 July 2008
Its Right. Just need to take care of amount of Cenvat, Freight inward etc...
Rajkumar Iyer
(Chartered Accountant)
(23 Points)
Replied 10 July 2008
Kindly note that inventories are additional accounts and does not relate to purchase and hence purchase cannot be credited. The entries for stock automatically comes to stock accounts when the purchases are entered of any item in the purchase register. Hence these are memorandum enteries and hence purchase cannot be credited at all.
The inventories relate to either raw materials, stores and consumables or traded items and accordingly the stock account are credited by transfer to these relevant sub accounts like raw materials or stores and consumables or quantity of traded items for in or out of the traded items.
HARIRAM
(Chartered Accountant)
(55 Points)
Replied 16 August 2008
To Price Difference A/c
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
CAclubindia
