[ValleryLee]

What is the journal for Work in Progress please.

I have debited the balance sheet but crediting the sales category would reduce profit and increase corporation tax at year end.

Thanks for any help

[paraclete]

work in progress is part of inventory, the intermediate stage between raw materials inventory and finished goods inventory. When you say a journal entry for work in progress you need to be more specific, transfers into work in progess or transfers out of work in progress?

You cannot debit a Balance Sheet, a Balance Sheet is an accounting report, If you debit work in progress you are increasing it's value, if you credit work in progess you are decreasing its value. You have some pecular concepts indicating more study is required, how can you credit sales and reduce income ?

I think what you are asking is can you transfer directly from work in progress to cost of sales, such an entry might happen in a contracting environment where job costing is used. What you would do is debt cost of sales and credit work in progress.

[ValleryLee]

Sorry, should have said crediting sales would increase profit and thus corporation tax.

Your last para answers my question, but in reverse!
Thanks