Stock of consumable store

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CA Sanjana arora (Querist)
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23 August 2013 a manufacturing co. purchase nut,bolts,cutters for its machinery and treat them as consumable store..but when co. issue these item for machine then it will be treated as consumed or not because these items are still attached in machine.should we show these item in stock.

Ganeshbabu K

Ganeshbabu K (Expert)
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23 August 2013 if material gone out of stores it is treated as consumption
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attached to machine means used for machine

CA Sanjana arora

CA Sanjana arora (Querist)
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24 August 2013 So i donot need to show their value anywhere if they are in use?

CA Sanjana arora

CA Sanjana arora (Querist)
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24 August 2013 But there is one more problem cutters are attached in machine as per the size of material which we have to cut..so if it cut the material then it was replaced by other one as per the size of other material..and when similar size of material comes again then we have to attached that cutter again..so it remain in use when we need it as per the material.please advise

Ganeshbabu K

Ganeshbabu K (Expert)
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24 August 2013 In my opinion it was looks like consumable item..

so if you used in machinery it can be charged to consumable item directly

other wise if it is possible to trace consumption in units wise ..create a current asset and when ever it is used transfer from current asset to repairs and maintanance..
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better to make it as consumption in my opinion

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