I would like to know under what circumstances is a fuel (such as diesel) acceptable as a raw material..? ..and if then please illustrate it.
Rama chary Rachakonda
(Master in Accounts & Lawyer email ID:firstname.lastname@example.org voice no:9989324294)
Replied 26 September 2021
when we use fuel in factories for production of goods comes under raw materials. Raw materials are usually recorded on a balance sheet as an inventory asset. When recording raw materials, a debit is made to the raw materials inventory account, while a credit is made to the accounts payable account.