taken from the
Expense items such as stationery, packing material, etc. may
have been purchased during the year to be used in the business activities. If
any of these expenses are not yet used or consumed at the end of a financial
year, they will be used or consumed in the next financial year. These expense
items can be regarded as a consumable store on hand if it is physically counted
at the end of the financial year. Consumable stores on hand are an asset for the
business. Note that this is not the trading Stock Items of the
Business.
Identify the Account, Calculate the Consumable stores Items on hand, Enter the Transactions and Post it to the Ledger:
For example, the pre-adjustment trial balance reflects
stationery expenses of R(£) 5 000. At the end of the financial year (on 28/29
February), we have done a physical count of our stationery and found that there
was R(£) 400 of stationery on hand, which was not yet used or consumed.
Enter the transaction in the General Journal. Press the
key on your keyboard or click on the 
speed button or icon. The Batch Type
selection screen will be displayed.
Select the General Journal Batch Type and click on the 
button. The General journal Batch Entry screen will be displayed. If the correct
contra account for the batch was not displayed on the Batch Type selection
screen, press the 
key on your keyboard or click on the 
speed button or icon to set the options
for this batch. Note that it is recommended that the Amount Entry field be set
to allow both (debit and credit).
Enter the transaction in the batch. After entering the
transactions in the general journal, the transactions is as follows:
Click on the 
speed button or icon or press the
key on your keyboard. Select the change the alias option.
Click on the 
speed button or icon or press the
key on your keyboard to post the transactions to the ledger. After
posting the transactions to the ledger, the entries should reflect as follows in
the ledger.
The actual amount of expenses for the financial year is the amount on the pre-adjustment trail balance, less the amount of the physical stores on hand. The expenses are decreased (credited) and current assets are increased (debited).
Identify the Account, Calculate the Consumable stores Items on hand, Enter the Transactions and Post it to the Ledger:
For example, the pre-adjustment trial balance reflects
stationery expenses of R(£) 5 000. At the end of the financial year (on 28/29
February), we have done a physical count of our stationery and found that there
was R(£) 400 of stationery on hand, which was not yet used or consumed.Enter the transaction in the General Journal. Press the
key on your keyboard or click on the speed button or icon. The Batch Type
selection screen will be displayed. Select the General Journal Batch Type and click on the button. The General journal Batch Entry screen will be displayed. If the correct
contra account for the batch was not displayed on the Batch Type selection
screen, press the key on your keyboard or click on the speed button or icon to set the options
for this batch. Note that it is recommended that the Amount Entry field be set
to allow both (debit and credit).Enter the transaction in the batch. After entering the
transactions in the general journal, the transactions is as follows:
Click on the speed button or icon or press the
key on your keyboard. Select the change the alias option.Click on the speed button or icon or press the
key on your keyboard to post the transactions to the ledger. After
posting the transactions to the ledger, the entries should reflect as follows in
the ledger.The actual amount of expenses for the financial year is the amount on the pre-adjustment trail balance, less the amount of the physical stores on hand. The expenses are decreased (credited) and current assets are increased (debited).
