Revalute stock FG - Accounting Entries?

[Former Member]

Dear Gurus,

Accounting Entries showing in both P&L and B/S with Increase/decrease in FG with examples showing with Amounts in PL and BS?

Anil

[suma_mani · Accepted solution]

Hi Anil,

Please search earlier tags before post a query.

Accouting entries are follows :-

1. If FG value increase :- Finishedd goods account..............Dr

                                        To Price revaluation account.............Cr ( Group of Change in stock P&L)

2. If value decrease :- Price revaluation account...........Dr ( Change in stock group under P&L)

                                      To Finished goods account..........Cr

Regards

Mani Kumar

[Former Member · Accepted solution]

Dear Mani,

As per the table, Show the entries with Amount clearly comes in PL and BS whether it is gain/loss, how it is reflected in the A/Cs. I want to know the Revaluted stock at the end of 31st may 2013. How much stock got revalued?

Stock Revaluation (FG)
31st March 2013					31st April 2013
Material	Cost	Stock	Value		Material	Cost	Stock Consumed	Closing Stock	Value
M1	10	100	1000		M1	10	20	80	800
M2	20	200	4000		M2	20	100	100	2000
M3	30	300	9000		M3	30	300	0	0
1st May 2013
Material	Cost	Opening Stock
M1	15	80
M2	30	100
M3	50	300
Revaluate stock as on 1st May 2013 of all stocks as on 31st May 2013.
Material	Intial stock	Revelaute stock	Intial value	Revaluate value
M1	10	15	1000	1500
M2	20	30	4000	6000
M3	30	50	9000	1500

[suma_mani · Accepted solution]

Hi

Material	Stock on hand on 31st March	Stock on hand on 31st March	Total	Consumed during April	Balance Qu as on 30th April	New Price as on May1st	Value change	Total cost as on 1st May	Change price
M1	100	10	1000	20	80	15	5	1200	400
M2	200	20	4000	100	100	30	10	3000	1000
M3	300	30	9000	300	0	50	20	0	0
Accouting entries as follows :-
Material 1……..Dr……..400
Material 2……..Dr……..1000
To Price revaluation account…….Cr……1400
No price change entry generate ,if stock is nil

Regards

Mani

[Former Member · Accepted solution]

Hi Mani,

Thank you very much, can you provide me the entries from 1st March 2013 to 31st May 2013 showing Amounts in both PL & BS, for the same. with increase/decrease in price/stock. And also how to show in GL Accounts Gain/Loss in Tran key UMB/PRD. (OBYC)

Anil

[suma_mani · Accepted solution]

Hi Anil,

Consumption entry is :-  M1 Consumption account........200

                                    M2 Consumption account........2000

                                    M3 Consumption account.........9000

                                        To M1 Stock account.....................200

                                        To M2 Stock account.....................2000

                                        To M3 Stock account.....................9000

As per standard Consumption ,Cost of goods sold,cost of production and Gain and loss stock revaluation under change in stock group (Increase and decrease in stock) under P&L.

Most of the Industries ,use same GL account for UMB and PRD. UMB means stock revaluation GL account ,which will impact while do the revaluation to the material. PRD means cost price difference

whcih may standard and moving average price.Example

Price differences arise in the case of material with MAP ,if there is not enough stock to
cover the invoice qunatiy. Material received without unplanned delivery cost and consumed
immidiatly. You came to know that there are unplanned delivery cost while making the MIRO.
Unplanned delivery cost must be upload on material but already material consumed. That time
PRD GL getting derived from OBYC-PRD.

Entry as follows,if frieght vendor same as RM vendor:-
GRIR Clearing account....100
Price difference account...10
  To Vendor account.....110

Regards

Mani Kumar

[suma_mani]

Hi Anil,

Please search earlier tags before post a query.

Accouting entries are follows :-

1. If FG value increase :- Finishedd goods account..............Dr

                                        To Price revaluation account.............Cr ( Group of Change in stock P&L)

2. If value decrease :- Price revaluation account...........Dr ( Change in stock group under P&L)

                                      To Finished goods account..........Cr

Regards

Mani Kumar