CCI Online Learning
What do you want to learn today?
     
CIBIL

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

MATERIAL CONSUMED

This query is : Resolved 

SIR ,

WE ARE REGISTERED AS WORKS CONTRACTORS. WHEN WE ARE USING THE MATERIALS PURCHASED IN THE PROJECT, WHAT ENTRY SHOULD BE PASSED. (SINCE THE STOCK IS DECREASING).

PLEASE CLARIFY DETAILLY.


There are three types of stock 1. Raw material 2. Semi finished goods 3. Finished goods. From your mail we understand that inputs / raw material is issued for doing the project and project is yet to be completed.
If so, debit material consumption and credit raw material account. Then Debit semi finished goods and credit raw material consumption. If you have software for manufacturing accounting , the system will automatically do accounting in operations and also in finance

sir the material we purchased will be in closing stock, but when we are using the stock for the project, what entry should be recorded and under which group in tally.

In Tally, create new ledgers semi finished goods and finished goods in current assets category like that of raw materials. similarly create ledgers like raw material consumed, semi finished goods consumed and finished goods consumed under direct expenses group and pass entry as per above mail.


You need to be the querist or approved CAclub expert to take part in this query .


Click here to login now



Similar Resolved Queries :





Trending Tags
income tax
ca exams
icai
epf
law
dvat
tin nsdl
coronavirus
cbdt
esic
tds
pm cares fund
Others
gstr 9
gst portal
career
Union Budget
ca
ca exams may 2020
taxpayers
cag
exams
close
GST Live Class