Office Supplies Unused Journal Entry
Office Supplies Unused Accounting Treatment
There is no need to record the Office Supplies Unused Journal Entry as we record Office Supplies Used Adjusting Entry and after that we easily get the adjusting value of office supplies unused.
For example, we have office supplies of Rs. 50000 purchased during the month (as the business has just started). Supplies of Rs. 10000 are consumed during the accounting period. What is the value of Office Supplies Unused at the end of the accounting period.
As we used office supplies of Rs. 10000, so it is charged to office supplies expense account and we debit it and the part of office supplies used is credited as it is now longer to be existed in the business for using. So we record the following adjusting entry as shown below:
Office Supplies Used Journal Entry
Office Supplies Expense a/c 10000
Office Supplies a/c 10000
(Office Supplies Used For The Period)
The amount of office supplies unused is:
Office Supplies Unused = Office Supplies Purchased - Office Supplies Used
= 50000 - 1000
= 40000
Unused Office Supplies Assets Or Liabilities / Unused Office Supplies In Balance Sheet
At the end of the accounting period, the Office Supplies Unused or Supplies on Hand is shown on Balance Sheet as a Current Asset.
Office supplies unused is not to be considered as a Liability i.e., the amount of payable by the business to vendors, suppliers and creditors, as it provides probable future economic benefits within one year to the business.
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