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| Journals for receipt of Stock item with locked estimate | Debit | Credit | Estimate of $20 costs |
|---|---|---|---|
| Stock on Hand - assets | 120 | Increase in stock value | |
| Trade Creditors Liabilities | 100 | Amount paid to stock supplier | |
| Landed cost clearing account - liabilities | 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= must be linked to landed cost clearing account | Dr | Cr | Payment of $25 costs |
| Trade Creditors - Liabilities | 25 | General Cheque Account - Assets | |
| Landed cost clearing account | 25 | ||
| Totals | 25 | 25 | |
| Once a journal line is linked to a landed cost account | |||
| 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 | 25 | Expense account tracking landed costs in separate account | |
| Landed cost clearing account - liabilities | 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 | 125 | Increase in stock value | |
| Trade Creditors Liabilities | 100 | Amount to be paid to stock supplier | |
| Landed cost expenses to stock - expense account | 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 |
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