Accounting entries at the time of purchase
Borrow: working capital materials - consumables
Credit: bank deposits
Accounting entries at the time of amortization
Borrow: manufacturing costs (for the production workshop purchased low-value consumables)
Loan: working capital materials - consumables
or Low-value consumables
Or:
Borrow: Low-value consumables (Low-value consumables in use)
Credit: Low-value consumables (Low-value consumables in stock)
Borrow: Manufacturing expenses
Management expenses
Credit: Low-value consumables (Low-value consumables amortization)
Extended Information:
The 50-50 amortization method is a method of amortizing 50% of the value of low-value consumables (fifty percent) at the time of their receipt, and then amortizing 50% of the value of low-value consumable items (net of salvage) at the time of their retirement. With this method, low-value consumable goods before scrapping has been retained on the books half of its value, indicating that the low-value consumable goods in use occupies a part of the funds, which is conducive to the management of the use of the physical, to prevent the emergence of a large number of off-the-books materials.
This method applies to the monthly number of claims and scrapped number of low-value consumables is relatively balanced, if a large number of low-value consumables, in order to equalize the burden of product costs, but also its amortization can be included in the amortized expenses first, and then amortized into the cost of the product in installments.
Baidu Encyclopedia-Low-Value Consumables