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Inventory Accounting Entries All the Inventory transactions will look for the valuation class and thecorresponding

G.L. Accounts and post

the values in the G.L accounts. For Example: during Goods ReceiptStock Account - DrG/R I/R Account - CrFreight Clearing account CrOther expenses payable - CrDuring Invoice

VerificationG/R I/R Account - DrVendor Cr When the Goods are issued to the Production Order the followingtransactions takes place:

Consumption of Raw Materials - DrStock A/c - Cr When the Goods are received from the Production Order the followingtransactions takes place: Inventory A/c DrCost of Goods

Produced - CrPrice difference Dr/Cr(depending on the difference between standard cost and actual cost) When the Goods are dispatched to customer through delivery the

followingtransactions takes place: Cost of Goods Sold DrInventory A/c - Cr When the Goods are issued to a Cost Center or charged off againstexpenses the following transactions takes place:

Repairs and Maintenance DrInventory A/c - Cr

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