IJ·lSJ Attounting Entries under Three .

Accounting Systems :
;-;.....:."':.s_.,;;·,\rs I nT:..:_r:...~bJ ..J.,.."'i:oun.ts .,·on-In tegral
Cost Accoun ts

I. .\ f.?:-~:i11s Ptm:h.1.Se A rC Dr. S1ores Ledger

pt.T~h.3.s..~ en To Creditors A "c Control Ale Dr.
cre-.:!it f0r s:-.x-k To General Ledger
Adjustm ent A le

~ , fa...~r.3.!s Purchas e A ·c Dr. Stores Ledger Sto

p-t:n:ha..--.cd en To CashA 'c Control Ale Dr. Ale
cas:i for stock To General Ledger To
Adjustm ent Ale
Purchas e A le Dr. WIP Ledger Control WIPLA,Uj..
Ale Dr. Ale Dr.

I
pur~t'..3.Se-J for To Cash I
S?O=ial joh Cre-rlitors A 'c To General Ledger To Cash/
Adjustm ent Ale Creditors
--- --- --- --- -l ~q}I ~l~:i,..-i
Materials 'Do' factory Overhe ad Factory Overhead
purchased for Contro l A 'c Dr. Contro1 A le Or,
immediate repair To Genera l Ledger To c ~,'Creditor A 'c
work Adjust ment A le
Materials returns Credit ors Ale Dr. Genera l Ledger Credito rs A!c Dr.
ro supplie rs To Purcha se Adjust ment Ale Dr. To Stores Ledger
Return A le To Stores Ledger Contro l A /c
Contro l A le
Pa)men t to Credit ors Ale Dr. No Entry Credit ors A /c Dr.
Creditors for To Cash/B ank A le To Cash/B ank A le
supplies made
Direct Materi als No Entrv
.,. WJP Ledger Contro l WIP Ledger Contro l
issued to A/c Dr. A le Dr.
.production To Stores Ledger To Stores Ledge r
Contro l A /c Contro l A le

ndire-ct Materi als No Entry Factory Overhe ad Facton.,1 Overh ead

ssued to Contro l A le Dr. Contro l A le Dr.
To Stores Ledger To Stores Ledger-
Contro l A le Contro l A le

irect Materi als No Entry Stores Ledger Contro l Stores Ledger Control
erurned from A le Dr. Ale Dr.
To \VIP Ledger To \'VIP Ledge r
Contro l A /c Contro l A,'c

No Entry Stores Ledge.r Stores Ledger

direct Materi als
Contro l A le Dr. Ale Dr.
tume.d to
To Factor y Overhe ad To Factor.,v Overh ead
Contro l A le Contro l A le

ate rial transfe red , No Entry No entry in contro l accoun ts but in WIP ledger
the entry is : Transf eree Job A le Dr.
To Transf eror Job A le

ortage of Factor y Overh ead Factory Overhead

aterials : Control Ale Dr. Contro l A le Dr.
No Entry To Stores Ledge r To Stores Ledger
If it is nonna l
Contro l Ale C-Ontrol A fc
If it is abnormal No Entry Costing Profit & Profit & Loss Ak Dr.
Loss Ale Dr. To Stores Ledge r
To Stores Ledger Control A te
Control A le
Wages Ale Dr. Wages Contro l Ale Dr. Wages Control Afc Dr.
To Cash Ale To General Ledger To CashA /c
Adjust ment Ale
 WIP Ledger Control WIP Ledger
••· Atlo,.ah"n of No 1:,my
Ale Or. Ale Dr.
Oirt('t Wates To Wages Control Ale To Wages
-·· -------·- --------1
factory Overhead -----~
Factory 0v
1~. Alk"i,ll\lt'n ('f No Lntry·
Control Ale Dr. Control .Ale Dr.
mJir('(1 " a.:t~ ll) Admn . Overhead Admn. Ov~
l'ai.·h,r). \dm n Control A1c Dr. Control Ale Dr.
Sd!in~ & Sell ing & Dist. Over• SeJling & Ditt.
P1!- tnt-i11k..,n head Control Ale Dr. Overhead '-"'II_....
Ovc:hraJ~ To Wages Control Ale Ale Dr.
To Wages"""'.,.
Factory Overhead Factory VV1~.,.
I h. IJ :c 1ime "ages ~o Entry
Control Ale Dr. Contro
ta ) If 1t 11, ~ormal To Wag
To Wages Control A le
Costing Profit & Loss Profit &
(!., ) If it 1s Abnormal l\o Entry To Wag
Ale Dr.
To Wages Control Ale

Expenses Ale Dr. WIP Ledger Control

17. 1)1rec1 exptns~~
To Cash / Ale Dr.
incurred
Creditors Ale To General Ledger To Cash / """~-
Adjustment Ale
Respective Overhead Respecti
18. Indirect e>.pcn~cs 'Do '
Control A le Dr. Control
or O\ crheads
To General Ledger ToC
mcumd
Adjustment A le

Ab.~>rpt,on of No Entry WIP Ledger Control WIP Led

hdory o-. c:rhcads Ale Dr. Ale Dr.
To Factory Overhead Tof
Control Ale Control

20. Ab~orption of No Entry Finished Goods Fini

Admn. Ovrrl1eads Control A le Dr. Control
To Admn. Overhead To A
Control Ale Co
21. Absorption of No Entry Cost of Sales Ale Dr. Cost 0
~fling & distri- To Selling & Dist. To Sel
bution overheads Overhead Control Ale 0vem
22. Under-absorption No Entry Costing Profit & Loss
of overheads Ale (or Overhead
Adjustment Ale) Dr. At
To Respective To Kai•
Overhead Control Ale
- - ---- ---- '(~ )..- .--- ---- @
over•absorption No Entry
I13• Respective Overhead Respective Overhead
of Overheads
Control Ale Dr. Control Ale Dr.
To Costing Profit & To Profit & Loss Ale
Loss Ale (or Overhead {or Overhead
Adjustment Ale) Adjustment Ale)
:4. carriage inward Carriage Inward Factory Overhead Factory Overhead
011 stores issued Ale Dr. Control Ale Dr. Control A/c
for production To Cash/Creditor Ale To General Ledger To Cash/Creditors Ale
Adjustment Ale
-is. Recording cost No Entry
-
of Finished Goods Finished Goods
finished Job/Goods Control A/c Dr. Control Ale Dr.
To WIP Ledger To WIP Ledger
Control Ale Control Ale
-
i6. (a) Recording cost No Entry Cost of Sales A/c Dr. Cost of Sales Ale Dr.
of goods sold To Finished Goods To Finished Goods
Control Ale Control Ale
(b) Cost of Sales No Entry Costing Profit & Loss Profit & Loss Ale Dr.
Ale Dr. To Cost of Sales A/c
To Cost of Sales (at cost)
Z7. Abnormal spoilage No Entry Costing Profit & Loss Profit & Loss A/c Dr.
or wastes Ale Dr. To WIP Ledger
To WIP Ledger Control Ale
Control Ale
28. Recording of sales Cash/Debtors Ale General Ledger Debtors/Cash Ale Dr.
To Sales Adjustment Ale Dr. To Profit & Loss Ale
To Costing Profit
& Loss Ale
-
29· Recording of Sales
Sales Return Ale Dr. Costing Profit & Loss Profit & Loss Ale Dr.
Returns To Debtors Ale Ale Dr. To Debtors Ale
To General Ledger
r----_ Adjustment Ale
30·Recor,mg
d' of Depreciation Ale Dr. Respective Overhead Respective Overhead
Depreciation To Capital Control Ale Dr. Control Ale Dr.
charges for the Assets Ne To General Ledger To Capital Assets Ale
Ptriod
Adjustment Ale
 ~ -e 91ij51a;~ ~,,1<l~'1''1

31. Transfe r of costs No Entry Special Repairs & Special Repairs &.
incurred against Mainten ance work Mainten ance wort
special repair Ale Dr. Ale Dr.
orders To WIP Ledger To WIP Ledger
Control A/c Control Ale
32. Transfe r of repair No Entry Respect ive Overhea d Respect ive Ove
work cost to Control A/c Dr. Control Ale Dr.
Overhea d To Special Repairs & To Special Repairs (
Mainten ance work A le Mainten ance work If
33. Recordi ng of Net Profit & Loss Ale Dr. Costing Profit & Loss Profit and Loss Ale ft
Profit earned To Capital Ale Ale Dr. To Capital A/c
To General Ledger
Adjustm ent A/c
34. Recordi ng of Net Capital Ale Dr. General Ledger Capital Ale Dr.
Loss incurred To Profit & Loss Ale Adjustm ent Ale Dr. To Profit & Loss
To Costing Profit &
Loss Ale

Tutorial Notes :
i) Under Non-inte gral system no entries are required for payment to creditors and for collcctiOR
debtors.
ii) The under / over absorbed overheads may be carried forward to the next accounti ng period
by
of respective overhead s Adjustm ent Account.

Format s of Contro l Accoun ts Under Non-In tegrated Accoun ting

Dr. i) Stores Ledger Control Accoun t
Rs.
To Balance b/d (Opening Stock)
" General Ledger Adjustment Ale
················· By WIP Control Ale
................. (Issued to producti on)
(Purchases)
" WIP Control Ale " General Ledger Adjustm ent Ale
................. (Purchase return)
(Return from work-order)
" Factory Overhea d Control Ale " Factory Overhea d Control Ale
................. (Issued for Factory repairs)
(Return of Indirect materials)
,, Adm. Overhea d Control Ale
(Issued to Adm. off"ice)
H
. ~