Journal entry
manoj (Service) (313 Points)
08 May 2013
A road constrction company purchase cement than use for road constraction. How this transtion record.
CMA RAVI
(ASSISTANT MANGER - FINANCE)
(478 Points)
Replied 08 May 2013
manoj
(Service)
(313 Points)
Replied 08 May 2013
Rajesh
(Service )
(7576 Points)
Replied 09 May 2013
For a construction co., Cement is a Raw material. Treat this transaction as Purchase.
You should debit to purchase account and credited to vendor (in case of credit) or bank.
Rajesh
CMA RAVI
(ASSISTANT MANGER - FINANCE)
(478 Points)
Replied 09 May 2013
| Originally posted by : manoj | ||
 |
How's this ? Cement purchase on credit basis and for new road |
 |
My dear accountant friend , You have not mentioned in your question that its a credit purchase ? It never matters its for new road or old road...
Abhishek Jain
(Manager-Finance)
(64 Points)
Replied 09 May 2013
Nature of purchase has to be seen
if it is for construction then to CWIP A/c
for repairs the repair & maint A/c
Cr to bank or party (if purchased on credit)
CA JIMI S PATEL
(ACCOUNT INCHARGE - GUJARAT REGION)
(98 Points)
Replied 09 May 2013
Dear Manoj,
If you purchase on Credit then entry is like this.
Purchase A/c Dr.
to Vendor A./c.
and passed consumption entry when it consumed in road construction.
If you use tally then go to stock journal and passed consuption entry.
If you Purchase on cash instead of Vendor A./c credit Cash or bank A/c.
manoj
(Service)
(313 Points)
Replied 09 May 2013
siva reddy
(Accounts Executive)
(22 Points)
Replied 10 May 2013
| Originally posted by : manoj | ||
|
|
How's this ? Cement purchase on credit basis and for new road |
|
Dear Manoj,
Purchase Entry
Dr. Cement A/c
Cr.Vendor A/c.
(Being cement purchase for road constrution.)
siva reddy
(Accounts Executive)
(22 Points)
Replied 10 May 2013
Dear Manoj,
Payment entry
Dr. Vendor a/c
Cr. Bank / Cash A/c.
(Being amount paid to _____________ (vendor name) for cement purchase of inv.no. ______)
CA Mukesh Choudhari
(xyz)
(153 Points)
Replied 10 May 2013
CMA RAVI
(ASSISTANT MANGER - FINANCE)
(478 Points)
Replied 10 May 2013
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