# Journal Entries — Integrated vs Non-Integrated System
## How to Approach the Entries
The debit side is identical in both systems for any transaction — what changes is the credit side:
- In an integrated system, the credit goes to the real-world account (Cash/Bank/Creditors etc.) because the cost ledger is part of the main ledger.
- In a non-integrated system, the cost ledger does not have real-world accounts. Instead, General Ledger Adjustment A/c is credited to balance the entry. This is because the financial transaction (paying cash, owing a creditor) is recorded in the separate financial ledger.
## Memory Rule
> Same debit. The credit side changes from Cash/Bank/Creditors (integrated) to General Ledger Adjustment A/c (non-integrated) only when the transaction involves an external party.
> When the transaction is purely internal (e.g., RM → WIP, RM → Factory OH), the entry is the same in both systems because no external party is involved.
## The Standard Entries
### 1. Purchase of Raw Material
| Integrated | Non-Integrated | |
|---|---|---|
| Dr | RM Control A/c | RM Control A/c |
| Cr | Cash / Bank | General Ledger Adjustment A/c |
### 2. Payment of Wages
| Integrated | Non-Integrated | |
|---|---|---|
| Dr | Wages Control A/c | Wages Control A/c |
| Cr | Cash / Bank | General Ledger Adjustment A/c |
### 3. Direct Material Issued to Production
(same in both systems)
```
WIP Control A/c Dr
To RM Control A/c
```
### 4. Direct Wages Charged to Production
(same in both systems)
```
WIP Control A/c Dr
To Wages Control A/c
```
### 5. Indirect Material — Apportioned to FOH / AOH / S&DOH
(same in both systems)
```
Factory OH Control A/c Dr
Admin OH Control A/c Dr
S&D OH Control A/c Dr
To RM Control A/c
```
### 6. Indirect Wages — Apportioned to FOH / AOH / S&DOH
(same in both systems)
```
Factory OH Control A/c Dr
Admin OH Control A/c Dr
S&D OH Control A/c Dr
To Wages Control A/c
```
### 7. Factory Expenses Incurred (e.g., factory rent paid)
| Integrated | Non-Integrated | |
|---|---|---|
| Dr | Factory OH Control A/c | Factory OH Control A/c |
| Cr | Cash / Bank | General Ledger Adjustment A/c |
## A Useful Observation
Look at entries 3-6. These are internal transfers within the cost ledger — they don't touch the outside world. So both systems record them identically. The difference appears only in entries 1, 2 and 7 — which involve an external party (supplier, employee, landlord).