Booking of stock consumables
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
07 September 2015
I had s query when t book consumables stock in stock register in government offices when actual delivery has been received or when bill is raised or when payment has been done
Querist : Anonymous
Querist :
Anonymous
(Querist)
07 September 2015
Plz clear it
18 July 2024
In government offices or any organization following accrual basis of accounting, including when to book consumables in the stock register, typically depends on when the goods or services are received and when the liability to pay arises. Here’s a breakdown of the process:
### Booking Consumables in Stock Register:
1. **Receipt of Goods:**
- **Date of Receipt:** Consumables are generally recorded in the stock register when they are physically received by the office.
- **Acknowledgment:** A goods receipt note (GRN) is often prepared upon receipt, detailing the quantity, description, and condition of the goods received.
2. **Invoice/Bill Raised:**
- **Date of Invoice:** If the consumables are purchased, the supplier issues an invoice or bill upon delivery.
- **Recording in Books:** The invoice date may be used to record the liability and to book the cost of the consumables in the financial records.
3. **Payment for Consumables:**
- **Date of Payment:** Payment for the consumables is recorded when it is actually made to the supplier.
- **Booking in Accounts:** The payment date is relevant for accounting purposes to recognize the expenditure and to manage cash flow.
### Principles Applied:
- **Accrual Basis:** Government offices typically follow accrual accounting principles where transactions are recorded when they occur, regardless of when cash is exchanged.
- **Matching Principle:** Expenses (cost of consumables) are recognized in the period they relate to, irrespective of the timing of payment.
- **Stock Register:** The stock register reflects the physical quantities of consumables on hand, which should match the quantities recorded in the accounting system.
### Conclusion:
To summarize, in government offices:
- **Stock Register:** Consumables are booked upon physical receipt, recorded in the stock register to maintain accurate inventory records.
- **Accounts:** The liability (cost) for consumables is recorded based on the invoice/bill date, reflecting the expense in the financial statements.
- **Payment:** Payment date is relevant for cash management but does not affect the timing of expense recognition.
Adhering to these practices ensures transparency, accuracy in financial reporting, and compliance with accounting standards applicable to government entities. If unsure, consulting with a professional accountant or referring to specific governmental accounting guidelines can provide further clarity.
### Booking Consumables in Stock Register:
1. **Receipt of Goods:**
- **Date of Receipt:** Consumables are generally recorded in the stock register when they are physically received by the office.
- **Acknowledgment:** A goods receipt note (GRN) is often prepared upon receipt, detailing the quantity, description, and condition of the goods received.
2. **Invoice/Bill Raised:**
- **Date of Invoice:** If the consumables are purchased, the supplier issues an invoice or bill upon delivery.
- **Recording in Books:** The invoice date may be used to record the liability and to book the cost of the consumables in the financial records.
3. **Payment for Consumables:**
- **Date of Payment:** Payment for the consumables is recorded when it is actually made to the supplier.
- **Booking in Accounts:** The payment date is relevant for accounting purposes to recognize the expenditure and to manage cash flow.
### Principles Applied:
- **Accrual Basis:** Government offices typically follow accrual accounting principles where transactions are recorded when they occur, regardless of when cash is exchanged.
- **Matching Principle:** Expenses (cost of consumables) are recognized in the period they relate to, irrespective of the timing of payment.
- **Stock Register:** The stock register reflects the physical quantities of consumables on hand, which should match the quantities recorded in the accounting system.
### Conclusion:
To summarize, in government offices:
- **Stock Register:** Consumables are booked upon physical receipt, recorded in the stock register to maintain accurate inventory records.
- **Accounts:** The liability (cost) for consumables is recorded based on the invoice/bill date, reflecting the expense in the financial statements.
- **Payment:** Payment date is relevant for cash management but does not affect the timing of expense recognition.
Adhering to these practices ensures transparency, accuracy in financial reporting, and compliance with accounting standards applicable to government entities. If unsure, consulting with a professional accountant or referring to specific governmental accounting guidelines can provide further clarity.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Itr 1 processing
- Off Market debit and credit transaction
- Reporting Income under Section 44ADA
- Showing Gift from relative in ITR for this year
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- Share accounting-->fifo - capital gain - period as per fifo?
- Short Term Capital gain on shares bought and sold after 2018 onwards
- ITR 2 Short Term gain & Long term gain
- ITR 1: Details for showing Exempt Income
- Form 10E u/s 89(1). Need clarification because experts opinions differ !!!!
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
