Construction

Surplus Material Sold to Third Party

Selling leftover materials (sand, aggregate, blocks) at project close-out to another contractor.

Account NameTypeDebit ($)Credit ($)
Cash in BankAsset (+)8,000.00-
Material Inventory / WIPAsset (-)-6,000.00
Gain on Sale of Surplus MaterialRevenue (+)-2,000.00

💡 Accountant's Note

Surplus materials recovered at project close are sold at market rate. The gain (sale price minus book value) is Other Income for the contractor.

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