How to make accounting entries for the inventory of an enterprise?

an enterprise's inventory includes all kinds of materials, products in process, finished products, inventory goods, etc. For inventory, inventory goods account and main business income account are generally set for accounting. How to make relevant accounting entries?

Inventory accounting entries

1. Purchase:

Borrowing: inventory goods

Taxes payable-VAT payable (input tax)

Lending: bank deposits

2. Sales:

Borrowing: bank deposits

Lending: main business income

Taxes payable-

1. Inventory: refers to the materials or materials that an enterprise holds for sale or is still in the process of production or will consume in the process of production or provision of labor services.

2. Characteristics of inventory:

(1) Inventory is a tangible asset

(2) It is highly liquid

(3) Inventory is time-sensitive

Note:

(1) Tangible assets refer to things that can be seen and touched

(2) Liquidity here refers to things that are in constant purchase. Losses to the enterprise

3. Confirmation conditions of the inventory

Only when the inventory meets the definition and meets the following conditions can it be confirmed:

(1) The economic benefits related to the inventory are likely to flow into the enterprise;

(2) The cost of this inventory can be measured reliably.

inventory counting method

1. periodic inventory system

"periodic inventory system", also known as "periodic inventory system", means that enterprises usually only register the increase of inventory in the account book, but do not record the decrease, and at the end of the period, calculate the decrease of inventory in the current period according to the actual inventory.

2. perpetual inventory system

The "perpetual inventory system", also known as the "book inventory system", means that enterprises set up various inventory ledgers, register the quantity and amount of materials, products, commodities, etc. one by one on a daily basis according to relevant vouchers, and make out the book balance quantity and amount at any time.