Treatment in Non integrated accounts

Capital WIP simply means dat we r investing to form a Capital assets....Take d example of Building A/c.

Entry Pattern:

1.When materilas issued to Capital WIP,

Building A./c Dr..

To SLC A/c (Stores ledger Controll A/c)

2.Material purchase for direct issue to Production:

WIP A/c Dr.

To Cash/Bank A/c.

But in case of  Integrated :

WIP A/c Dr.

To CLC  ( Costing Ledger Controll A/c ) in case of non integrated..

since in the integrated books...there is no any seperate Cash or Bank ledger maintained,therefore instesd of Cash we pass the entry directly from CLC A/c.

In normal cases, the entry shall be routed through the SLC ledger in this way:

at the time of purchase of material

SLC A/c Dr.

To Cash/CLC   (where applicable)

Materials issued to production

WIP A/c Dr.

To. SLC A/c.