Inventory booking

A/c entries 436 views 5 replies

Santosh

Manager-Accounts

43 Points Joined November 2012

Dear Sir,

I am stuck in some situation need expert advice for the same.

We are into buying and selling of Biochemicals. We import raw concentrate and sell after diluting the same.

for e.g. We bought raw concentrate of biochemical qty 1 ltr. Now for selling we need to dilute water say 19 ltr. So here we did purchase of 1 ltr and for selling we are diluting and selling which the qty has become 20 ltr. Kindly advice how to book inventroy.

Your opinion will be highly appreciated.

Regards,

Santosh B Dasoji

Replies (5)

Anil Sankar V

1877 Points Joined November 2008

For purchase:

water a/c dr xxx

conc.RM a/c dr xxx

To cash a/c xxxx

For sales:

sales a/c dr xxx

To cash a/c xxx

if you are using the tally you can convert (conc.RAW material+water) into diluted raw material

that diluted rawmaterail wii be shown in inventory.

if you are maintaing the books physical,maintain the diluted in form of litres and cross check with conc.raw material+water in form of litres

Santosh

Manager-Accounts

43 Points Joined November 2012

Sir thanks for the reply, Actually we are importing only raw concentrate & for diluting we are using water available in the office. So my question is can we book water in purhase?