What is the journal entry for receipt of gold coin as a sales incentive by the company?
Saliq Ansari
(CA_Final Student)
(885 Points)
Replied 11 June 2016
Sales Incentives A/c Dr. ( Expenses)
To Value of Gold Coins(so acquired).
jijesh
(Article Trainee)
(76 Points)
Replied 13 June 2016
Dear Saliq, here incentive received by company so should credited it as income. but where it will debit..? if we debited gold coin as current assets how it will value as on 31st March..?
Saliq Ansari
(CA_Final Student)
(885 Points)
Replied 13 June 2016
Oh I thought it otherwise, the answer to your query is as follows
Treatment of Gold coin in the books depend on the intention of management to held such asset:
Valuation as 31/03 should be
Hope this clears your query.
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