Cost Accounts Journal Entries for Integral and Non Integral Accounting

Material purchased
a) For Stock  Stores ledger Control A/c.Dr To General ledger adjustment A/c.
b) For Jobs  Work-in-progress A/c. Dr To General ledger adjustment A/c.

Material issued
a) Direct Material  Work in progress A/c. Dr To Stores Control A/c.
b) Indirect Material  Factory overhead A/c Dr. To Stores Control A/c.

Material returned from shop floors
Stores Control A/c. Dr  To Work-in-progress A/c.

 Material returned to supplier
General ledger adjustment A/c. Dr   To Stores Control A/c.

Material transferred from one Job to another job
Transfer Job A/c. Dr  To transfer job A/c. .

Salary and wages paid
Wages control A/c.Dr  To general ledger adjustment A/c

Distribution of wages :
Direct wages            Work in progress A/c
Factory overhead       Factory overhead A/c
Office overhead          Office overhead A/c
S & D expenses          S & D overhead A/c

 To wages control A/c

Direct Expenses incurred
Work-in-progress A/c. To general ledger adjustment A/c

9. Factory Overhead incurred
factory overhead A/c.
To general ledger adjustment A/c

Factory Overhead recovered / observed
Work-in-progress A/c. To factory overhead A/c.

Under absorbed overheads
Costing P & L A/c To respective overhead A/c

Over absorbed overheads
Respective overhead A/c To costing P & L A/c


Office Overhead incurred
Office overhead A/c. To general ledger adjustment A/c

Office Overhead recovered / observed
Finished goods A/c. To office overhead A/c. 

Selling Overhead incurred
Selling overhead A/c. To general ledger adjustment A/c

Selling Overhead recovered / observed
Cost of sales A/c. To selling overhead A/c.

Finished goods produced
Finished goods A/c. To Work-in-progress A/c.

Goods sold (At cost)
Cost of Sales A/c To Finished goods A/c.

For Sales
General ledger adjustment A/c. To Sales A/c.

Sales returned
Sales A/c. To General ledger adjustment A/c.

Goods returned sold (At cost)
Finished goods A/c To Cost of sales A/c.

Capital Work
Sundry Assets / capital WIP A/c. To Work-in-progress A/c.

Repair work
Relevant Overhead A/c. To Work-in-progress A/c

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