Accounting entry

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Dear All,

If a company (construction) collects quite a large quantity of sand from Sea shores on its own & where no supplier is involved which also significantly increases its inventory value, what will be accounting entry for the same ?

Thanks,

Amit Sarkar

Replies (1)
Supplier a/c (transport charges) To Cash/BANK Sand A/c To Supplier A/c as sand was free of cost only transportatiom wud be capitalized but inventory of sand are recorded hence supplier a/c closed with sand a/c.

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