Manufacturing costs and accounts . sh. In the first case the total for the month,$1,300 is credited to sundry supply firms, and represents ourindebtedness to them, to be discharged by payment of cash atsome convenient future date. The allocations of this sumare summarized in the various allocation columns and chargedto the respective ledger accoimts as shown. The same procedure is followed in the case of the Cash Journal,with the exception that credit is made to Cash account—as themoney has been paid out directly, such purchases not having beenmade on credit. The result of these transactions i
Manufacturing costs and accounts . sh. In the first case the total for the month,$1,300 is credited to sundry supply firms, and represents ourindebtedness to them, to be discharged by payment of cash atsome convenient future date. The allocations of this sumare summarized in the various allocation columns and chargedto the respective ledger accoimts as shown. The same procedure is followed in the case of the Cash Journal,with the exception that credit is made to Cash account—as themoney has been paid out directly, such purchases not having beenmade on credit. The result of these transactions is that we now have a seriesof accounts that show the present form of the purchases wehave made during the month. Some of these accounts will be 30 MANUFACTURING COSTS AND ACCOUNTS observed to have balances in them, which have been broughtdown from previous months. It is very important to under-stand why some have balances and some not. The accountsthat contain balances are those representing forms of purchase Buildings Equipment. Depreciation Journal Item ^To Sales Dcpt,To Factory Total Chargeable 575 515 FactoryDepreciation (b15 ) \ /Sales Dept. \^ _^^,x^epreclatlon Stores Issue Journal
Size: 879px × 2845px
Photo credit: © The Reading Room / Alamy / Afripics
License: Licensed
Model Released: No
Keywords: ., bookcentury1900, bookdecade1910, bookpublisheretcetc, booksubject
