Expense items such as stationery, packing material, etc. may have been purchased during the year to be used in the business activities.

If any of these expenses are not yet used or consumed at the end of a financial year, they will be used or consumed in the next financial year.

These expense items can be regarded as a consumable store on hand if it is physically counted at the end of the financial year. Consumable stores on hand are an assets for the business.

- These are not the trading Stock Items of the business.

To Identify and Calculate Consumable Stores on Hand:

Identify the Consumable Stores on Hand - For example, the pre-adjustment trial balance reflects stationery expenses of 5000. At the end of the financial year (on 28/29 February), we have done a physical count of our stationery and found that there was 400 of stationery on hand which was not yet used or consumed.

- The expense of 400 needs to be recorded Consumable Stores on Hand Account.

To Adjust Consumable Stores on Hand:

1. Click on the Batch Entry icon, or click on the Input→Batch Entry menu option.
   - Keyboard Access: Press the F2 key on your keyboard. Alternatively, you may press the Alt+I+B keys on your keyboard.
   The Batch Type Selection screen will be displayed.
2. Select the General Journal.
3. Click on the Open button. The Batch Entry Transaction screen for the General Journal will be displayed.
   - If the correct contra account is not displayed on the Batch Type Selection screen, or if you have not yet set the batch up; or if your requirements should change, click on the F10: Setup icon, or press the F10 key on your keyboard.
   - It is recommended that the Amount Entry field be set to allow both (debit and credit).
4. Enter the transaction in the batch. After entering the transactions in the general journal, the transactions are as follows:
   
   - Since no Tax is applicable to these transactions, you may select to hide the tax column, Exclusive and Inclusive icons, as well as the lookup facility in the Setup Options for the General Journal, as in this example.
   - It is not necessary to balance the batch, if you have entered debit transactions for the same amount as for credit transactions, the net total of all transactions (debits minus credits) and the reference total for the entire batch (journal) should be zero.
5. Click on the F9: Process icon, or press the F9 key on your keyboard, to change the alias.
   - This will help you if you wish to identify a specific batch to generate a batch type report, or if you wish to export posted batches to a file.
6. Click on the F8: List icon, or press the F8 key on your keyboard, to list the batch.
   - It is a good idea to list the batch, and check the entries on the batch thoroughly. If there are any errors, you may edit the batch before posting it.
7. Click on the F6: Post icon, or press the F6 key on your keyboard, to post (update) the batch to the ledger.

After posting the transactions the T-Account View of the transactions should reflect as follows:

1. Income Statement Accounts:
   
2. Balance Sheet Accounts:
   
   

The actual amount of expenses for the financial year is the amount on the pre-adjustment trial balance less the amount of the physical stores on hand.

The expenses are decreased (credited) and current assets are increased (debited).

- Debits - Assets = Credits - Expenses

— digidan 2006/11/03 06:59