You will have to pass the entry for cash purchase i.e. Dr. Purchases & Cr. Cash. But if it is not to be sold there might be two treatments:-1. one is if you will use such goods for further manufacturing or processing of goods you might show such goods under Work in Process or WIP & subsequently transfer it to your closing stock,2.the other scenario could be if you consume such goods within the entity, then no entry will have to be passed the goods will be consumed within the organization & will not form a part of your closing stock.
Dec 02 2013 04:18 PM