Supplies on Hand
Definition: Supplies not yet consumed
Scope:NarrowDifficulty:Very Easy
Supplies not yet consumed
Common Journal Entries
| Account | Debit | Credit |
|---|---|---|
| 1. Purchase supplies | ||
| Buy $1,200 of office supplies. | ||
| SuppliesAsset+ | $1,200 | |
| CashAsset− | $1,200 | |
| Asset recorded at purchase. | ||
| 2. Adjusting entry — supplies used | ||
| Count shows $350 on hand; $850 used. | ||
| Supplies ExpenseExpense+ | $850 | |
| SuppliesAsset− | $850 | |
| Asset reduced to physical count; difference expensed. | ||
T-AccountsA visual representation of a ledger account shaped like the letter T. Left side shows debits, right side shows credits.
SuppliesSuppliesAssetA resource owned by the business. Normal balance: debit. Debits increase, credits decrease.
DebitLeft side of a journal entry. Increases assets and expenses. Decreases liabilities, equity, and revenue.
$1,200.00
◀ Normal bal.
CreditRight side of a journal entry. Increases liabilities, equity, and revenue. Decreases assets and expenses.
$850.00
$350.00
CashAsset account. Debits increase the balance. Credits decrease the balance.AssetA resource owned by the business. Normal balance: debit. Debits increase, credits decrease.
DebitLeft side of a journal entry. Increases assets and expenses. Decreases liabilities, equity, and revenue.
◀ Normal bal.
CreditRight side of a journal entry. Increases liabilities, equity, and revenue. Decreases assets and expenses.
$1,200.00
$1,200.00
Supplies ExpenseSupplies ExpenseExpenseA cost incurred in the process of earning revenue. Normal balance: debit. Debits increase, credits decrease.
DebitLeft side of a journal entry. Increases assets and expenses. Decreases liabilities, equity, and revenue.
$850.00
◀ Normal bal.
CreditRight side of a journal entry. Increases liabilities, equity, and revenue. Decreases assets and expenses.
$850.00
DurationShort-Term
External Links
- Office supplies — Wikipedia