Ask Experts Questions for FREE Help !
Ask
    dobembe's Avatar
    dobembe Posts: 7, Reputation: 1
    New Member
    		  
    #1

    Jan 31, 2010, 08:29 PM
    Supplies expenses
    What is the difference between supplies and supplies expenses?
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
    Uber Member
    		  
    #2

    Feb 4, 2010, 10:24 PM

    Supplies is an asset. It's supplies that you still have and are as yet unused. Since you have them and they still have value (they are something you can use) that makes them an asset.

    Supplies expense is for the supplies which have been used up. If they're used, they can't stay an asset cause you no longer have them and they have no value anymore. Part of the definition of an expense is assets that are consumed.
    dobembe's Avatar
    dobembe Posts: 7, Reputation: 1
    New Member
    		  
    #3

    Feb 9, 2010, 11:38 AM

    What is the meaning of supply on hand? How do we treat it on the journal?
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
    Uber Member
    		  
    #4

    Feb 11, 2010, 02:32 AM

    Supplies on hand is exactly what it says it is: the amount of supplies that you have on hand at a given point in time.

    But it won't agree with what is in the account, because you haven't been expensing it every time you pull a pencil out of the supply room. So it goes into the asset when you get it, and sits there until the end of the period. Then the supplies on hand are counted, and you adjust the account to agree with that number. The amount used credits out of the supplies (asset) and debits into the expense.

    So if there's 1000 in the supplies account and only 300 are on hand, then you've used 700 of them. The 700 has to move from the asset account to the expense.
    vanescott26's Avatar
    vanescott26 Posts: 4, Reputation: 1
    New Member
    		  
    #5

    Jul 18, 2010, 02:38 PM

    Supplies on hand at march 31, $ 1,100
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

End of Fiscal Period, Didn't account for expenses for supplies. [ 1 Answers ]

If at the end of a fiscal period, a business owner does not make an adjustment for supplies what effect will it have on the business's financial reporting? I know that this is not a proper procedure of accounting, but would this just affect the business's financials by not ending up with the...

Accounting for supplies [ 2 Answers ]

How do we account for supplies? Are they included in inventory or have a separate account in the balance sheet? Example : Company X acquired inventory that cost Y . Company X acquired supplies that cost Z .

Adjustment for supplies [ 1 Answers ]

If supplies have a beginning balance of 1,245 and was debited for 2,860 for supplies purchased during the year. How do I journalize the adjusting entry required at the end of the year assuming the amount of supplies on hand is 1,349

Power Supplies [ 1 Answers ]

Hi, I'm going to be traveling in the caribean, I'd like to take my laptop and camcorder... does anyone know if I need to purchase a separate power regulator, or do the power supplies attached to most electronics take care of any powe surge or lack thereof Thank

View more questions Search