Stationery Purchase Journal Entry

Stationery is the small office supplies that the employees use in the office.

The company purchase stationery from envelopes to business cards, letterheads to pens, the stationary represents the public face of your company. That is why it is important to make sure that your stationery design sends the right message about your business.

Professional and well-designed stationery can help to give your company a significant boost in the eyes of potential clients and partners. It can also help to create a more positive impression of your company amongst employees and other stakeholders. When it comes to designing your company’s stationery, it is important to work with a professional designer who understands your business and its objectives. With their help, you can create a cohesive and stylish range of stationery that reflects the values of your company in the best possible light.

The company purchases stationery from a variety of suppliers. Some of the suppliers are local, while others are national or international. The company evaluates a number of factors when choosing a supplier, including price, quality, customer service, and delivery time. In some cases, the company may choose to purchase stationery from a less expensive supplier if it will result in savings for the company. However, the company always strives to purchase high-quality stationery that will meet the needs of its employees.

The company records the stationery as an expense on the income statement. The company will record the expense when it is purchased from the supplier. We ignore the remaining balance due to the small balance. The stationery is highly likely to be used within a short period of time which differs from the fixed assets.

Journal Entry Stationery Purchase

Stationary is the type of expense that a company consumes on a daily or monthly basis. It is the expense that should be recorded on the income statement.

The stationary may not be used at the end of the month. Some people may challenge to record it as the current assets on the balance sheet and reverse to the expense when stationary is used. It is the correct way, but it requires a lot of work. The company needs to keep proper listing and allocate every month.

The process is not straightforward while the stationary amount that is very small.

It is easier to record the stationary as an expense.

The journal entry is debiting stationary expenses and credit cash.

Account	Debit	Credit
Stationary Expense	XXXX
Cash		XXXX

Note: Some companies record the stationary as the current assets on the balance sheet. When the staff withdraws the item to use, the accountants will reverse from current assets to expenses. There is nothing wrong with this method, but it requires many works for a small amount of expense.

Example

ABC is the marketing agency that promotes the clients’ business both online and offline. The company has spent an amount $ 500 to purchase the stationary for daily use. Please prepare journal entries for stationary purchases.

The company purchases the stationary amount $ 500 which is not a huge amount. The amount is not material to the company. The stationary maybe remains at the end of the month, but it is not necessary to allocate the stationary between assets and expenses. The amount is very low. We should record it as an expense immediately.

The journal entry is debiting stationary expenses $ 500 and credit cash $ 500.

Account	Debit	Credit
Stationary Expense	500
Cash		500