Go AD-Free with CAclubindia PRO for Rs 167/Month Only. Subscribe Now!

Unused stationary stock

A/c entries 8076 views 1 replies

vasoya ankit

Practice

137 Points Joined March 2009

IN OUR COMPANY (STOCK BROKER AT BSE-NSE-MCX) WE HAVE PURCHASED BULK STATIONARY OF HOWEVER THERE IS UNUSED STOCK AT YEAR END,

SHOULD I TREATE IT AS CONSUMABLES AND STORES AS CURRENT ASSETS IN BALANCE SHEET AT YEAR END FOR SUCH UNUSED STOCK AT YEAR END?

KINDLY PROVIDE ANS BASED ON ACCOUNTING STANDARDS/GUIDANCE NOTES/CASE LAWS ETC IN THIS REFERENCE

IN OUR COMPANY( STOCK BROKER AT BSE-NSE-MCX) WE HAVE PURCHASED BULK STATIONARY OF HOWEVER THERE WAS UNUSED STOCK AT YEAR END, SHOULD I TREATE IT AS CONSUMABLES AND STORES AS CURRENT ASSETS IN BALANCE SHEET AT YEAR END FOR SUCH UNUSED STOCK AT YEAR END ? KINDLY PROVIDE ANS BASED ON ACCOUNTING STANDARDS/GUIDANCE NOTES/CASE LAWS ETC IN THIS REFERENCE

Read more at: /forum/accounting-of-stationary-stock-220680.asp#.UFbxp653fCM

Replies (1)

Bhaskar Unnikrishnan CPA CMA

Accounts / Administration

414 Points Joined August 2011

The cost of unused supplies remains an asset and is recorded in an Office Supplies account (Current Asset) Adjustment for year end:

a) The unused stationay excluded from stationay expense for the year so as to match correct revenue earned during the period against expense for the year.

b) An asset is created to show stock of stationary in hand at year end(Current Asset).

Journal Entry would be:

(Debit) Stock of Stionary

(Credit) Stationary expense