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ADJUSTMENTS
CONSUMABLE STORES ON HAND
  
Expense items such as stationery, packing material, etc. may have been purchased during the year to be used in the business activities. If any of these expenses are not yet used or consumed at the end of a financial year, they will be used or consumed in the next financial year. These expense items can be regarded as a consumable store on hand if it is physically counted at the end of the financial year. Consumable stores on hand are an asset for the business. Note that this is not the trading Stock Items of the Business.

Identify the Account, Calculate the Consumable stores Items on hand, Enter the Transactions and Post it to the Ledger:

For example, the pre-adjustment trial balance reflects stationery expenses of R() 5 000. At the end of the financial year (on 28/29 February), we have done a physical count of our stationery and found that there was R() 400 of stationery on hand, which was not yet used or consumed.
Enter the transaction in the General Journal. Press the key on your keyboard or click on the speed button or icon. The Batch Type selection screen will be displayed.
Select the General Journal Batch Type and click on the button. The General journal Batch Entry screen will be displayed. If the correct contra account for the batch was not displayed on the Batch Type selection screen, press the key on your keyboard or click on the speed button or icon to set the options for this batch. Note that it is recommended that the Amount Entry field be set to allow both (debit and credit).
Enter the transaction in the batch. After entering the transactions in the general journal, the transactions is as follows:

 

Minimise button - inactive. Restore button - click to display this screen to full size and click again to restore it to its original size. Title bar - double-click to display the screen in full size or to return to the normal size. Title bar. The name of the selected batch. Title bar. The Alias for the selected batch. Close button - Click to close or exit this screen. Click to delete a selected transaction. Click to insert a row or line above a selected transaction. Click to balance the batch, if the batch is not already in balance. Click to post or update the transactions to the ledger, if the batch is in balance. Click to enter transactions Inclusive or Exclusive of VAT. Click to list the entries or transactions entered into the batch. Click to access more processing options for the batch. Click to set the Options for this batch. Enter the reference number for the transaction. Enter or select the date of the transaction. Enter a description for the transaction. Select the Stationery on Hand (Current Assets) account for the debit transaction and select the Stationery Expense account for the credit transaction. Enter the debit amount for the Stationery on Hand (Current Assets) account. Enter credit amount for Expenses account. Scroll bar - scroll to view more transactions entered in the batch.
Click on the speed button or icon or press the key on your keyboard. Select the change the alias option.
Click on the speed button or icon or press the key on your keyboard to post the transactions to the ledger. After posting the transactions to the ledger, the entries should reflect as follows in the ledger.



The actual amount of expenses for the financial year is the amount on the pre-adjustment trail balance, less the amount of the physical stores on hand. The expenses are decreased (credited) and current assets are increased (debited).


Once these transactions have been processed and you have done the Year-end process in the Tools - Global Processes - Do Year-end menu option, you need to reverse these adjustments in the new financial year. The reason for this is that these adjustments have served its purpose in the old financial year to assist you to generate the correct final financial statements.