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Accounting Journals
| Journals for receipt of Stock item with locked estimate | Debit | Credit | Estimate of $20 costs | |
|---|---|---|---|---|
| Stock on Hand - assets - Credit | 120 | Increase in stock value | ||
| Trade Creditors Liabilities - Debit | 100 | Amount paid to stock supplier | ||
| Landed cost clearing account - liabilities - Debit | 20 | Total allocated other costs for these items based on the estimate | ||
| Totals | 120 | 120 | ||
| Stock Supplier Invoice | Dr | Cr | Payment to supplier for stock | |
| Trade Creditors - Liabilities | 100 | |||
| Goods Received not Invoiced | 100 | |||
| Total | 100 | 100 | ||
| CR Invoice Journal for a cost paid (customs) - no changes required | Dr | Cr | Payment of $25 costs | |
| Trade Creditors - Liabilities - Debit | 25 | |||
| General Cheque Account - Assets | 25 | 25 | ||
| Totals | 25 | 25 | ||
| Adjustment journal required once actuals are associated | Dr | Cr | Adjustment of stock from $20 estimate to $25 Actual | |
| Landed Cost Expenses To Stock - Expense Account - Debit | 25 | Expense account tracking landed costs in separate account | ||
| Landed cost clearing account - liabilities - debit | 20 | Clear the clearing account of the estimate value | ||
| Stock on Hand - Assets - Credit | 5 | Update the stock on hand with the increase (Decrease) in value required | ||
| Totals | 25 | 25 | Result = Stock increases $5 (now $25 more than paid to stock supplier) and Landed Cost Clearing account = 0 Landed cost expense account = Actual = $25 | |
| Adjustment Journal if Actuals are used prior to stock receipt | Dr | Cr | When $25 actuals are known prior to receipt of stock | |
| Stock on Hand - assets - Credit | 125 | Increase in stock value | ||
| Trade Creditors Liabilities - Debit | 100 | Amount to be paid to stock supplier | ||
| Landed cost expenses to stock - expense account - Debit | 25 | Expense account tracking landed costs in separate account | ||
| Totals | 125 | 125 | Result = Stock increases $25 more than paid to stock supplier Landed cost expense account = Actual = $25 |
So two new control accounts have been added to Maintain GL Control
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