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Yes money came out of the bank.
When accounting for an expense incurred, the client debited expense rightfully but no credit entry was made.

There was no credit. Meaning only one entry was made. How do we correct this using a journal?

Hey guys,

If say company A, when recognizing an expense only debited the expense with X amount but did not credit Bank/trade payable. How do we complete the double entry? What's the correcting journal?

I'm actually auditing a certain firm, so that is what I discovered regarding inventory.

Thank you. They just don't want to admit that what they are doing is wrong.

Not fuel in their cars, I'm referring to the fuel they store on their different sites.

They buy and store fuel that is used on their company cars, dip readings (stock count) is done at year end. They also have plant spares which they also consider as inventory during the year.

Their argument is that, they are a service providing entity and they don't sell that inventory for profit.

That's my understanding too. They should have a current asset not expense closing inventory that still has value.

Yes it is not sold. They expense it at year end and then create a reversal journal at the beginning of the new year. That is, they reverse the credit they did at year end

Dr. Inventory
Cr Expense acc

The firm expenses the whole balance of closing inventory as year end, as a result there is no inventory on the balance sheet.

Is it right to expense closing inventory at year end? What does IAS 2 say about this?