1

JOURNAL ENTRIES
Buying materials on accounts Purchase return Payments of Purchases Issuance of materials for production Return from departments Materials Loss Preparation of payroll (if any deduction) Payment Of Payroll Charged labour to Work in process Issuance of indirect materials Payment sof indirect labours Payment of indirect labours Payment of Other Expenses Charged Work in Process for F.O.H Completion of Finish Goods Purchase/Materials a/c To A/c Payable A/c Payable To Purchase A/c A/c Payable To Bank A/c Work in Process A/c To Purchases/Materials A/c Purchases/Materials A/c To Work in Process A/c F.O.H Payroll To Deduction A/c To Accrued Payroll/Payroll Payable A/c Accrued Payroll A/c To Bank A/c Work in process To Payroll A/c F.O.H A/c To Materials A/c F.O.H A/c To Accrued payroll A/c To Purchases/Materials A/c

Accrued Payroll A/c To Bank A/c F.O.H A/c To Cash/ Bank A/c

Work in process A/c To F.O.H A/c A) Finish Goods 30000 To Work in process A/c B) C.G.S A/c 26000 To Finish Goods A/c C) Account Receivable To C.G.S A/c 30000 26000 26000 30000

2 To Profit on sale A/c 4000