Journal Entry for inventory used for Own Usage from the Stores
by Shabeeb Hassan
Q:Hi Sir / Madam,
I am working in a stores division of the one of the corporate firm. We are handling the purchase / procurement for the whole divisions under the corporation and we stores some items and others we delivered to the division's location.
From the stored items we used some items for our own usage means - for the employee of the purchase / procurement division.
How can we pass the entry for the above transaction?
Pls reply at the earliest.
A: Dr Operating Expense Cr Inventory/Purchases Account
In other words you are cancelling the inventory (an asset) out from your records and recording that this was an expense for the business.