Office Supplies Are Expensed When?

Office Supplies becomes Expense when these are consumed / used by the business during the accounting period.

The adjusting entry to expense out office supplies is recorded by a debit to office supplies expense account and a credit to office supplies account as shown below:

                                                             OS Expense a/c  XXX

 

                                                                                                               OS a/c  XXX

 

                                                                  (OS Consumed For The Period)

OS expense is recorded in the Income Statement for the current accounting period. The remaining part of OS that is not used or consumed is Office Supplies on Hand / Unused Office Supplies, which is treated as current asset and recorded on balance sheet.