variances in P + L

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Can anybody help with how to record variances in the P+L Acc?<BR>Also the Journal for Stocks,Material price variance and Creditors Contol Acc. Thanks.<BR><BR>Anita

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    variances in P + L

    I assume you mean stocks valued at standard price and price variances<BR><BR>If the variance is favourable (eg cost less than standard price valuation)<BR><BR>Dr Stock<BR>Cr Materials Price Variance<BR>Cr Creditors Control A/c<BR><BR>If variance is adverse (eg cost more than standard price valuation)<BR><BR>Dr Stock<BR>Dr Materials Price Variance<BR>Cr Creditors Control Account<BR><BR>The variance account balances are then credited or debited to the P & L.<BR><BR>Hope this helps<BR><BR>Edit

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