Inventory booking

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  

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?

ya..hopefully it has cost and not zero value.

Sir actly we are not buying water from anywhere nor paying for it. Its just a tap water for dilution.

so how to book purchase in this case?

Regards,

Santosh

write zero entry for water,so that it will easy to identify how much is converted into conc.