ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel
  • »
  • Business and Employment»
  • Accounting

Inventory Adjusting Entries to Account for Changes in Office Supplies on Hand

Updated on April 12, 2012

Supplies on hand often include small items used in business.



Supplies on hand is an older accounting term that describes the supplies a company keeps for immediate use. In most cases, the supplies described here include office supplies or other minor inventory used in administrative tasks. Like all other items, accountants must properly record the purchase and use of supplies on hand. Adjusting entries are necessary to report the use of supplies on hand in the business. Accountants can post the entry either as the company uses supplies or at month end as an adjusting entry.


Record the purchase of supplies kept on hand by debiting supplies inventory and crediting cash or accounts payable, depending on how the company paid for the goods.

Report opening inventory for supplies on hand as the previous month’s ending inventory plus current month purchases. This figure is in the company’s general ledger.

Conduct a physical count of supplies on hand. Note the cost for supplies used as the items missing from inventory times the cost for each item.

Total the cost for goods not found when conducting the physical inventory. This figure represents total cost for used supplies on hand.

Post an expense amount in the general ledger for used supplies on hand. Debit supplies expense and credit supplies inventory.

Report the supplies expense amount on the income statement and the ending inventory figure on the balance sheet.


    0 of 8192 characters used
    Post Comment

    No comments yet.