cashback

Save Share

This query is : Resolved

Rupayan Basak (Querist)

10 May 2016 As you all know that the wallets like paytm Mobikwik freecharge provides cashback on bill payments at times. Now Mr X is a individual earning professional income and pays his telephone bill for his office through freecharge. Now in the month of March he pays his entire bill of Rs 1144 through freecharge. Freecharge was running an offer and they credited a cashback of Rs 100. Now in April he pays his bill of Rs 1144, this time using Rs 1044 from his debit card and the Rs 100 cashback obtained last month. What is the accounting implication for this cashback ? How much shall be charged to telephone expenses ?

CA Yugal Purohit

CA Yugal Purohit (Expert)

11 May 2016 Cash back should be treated as discount and telephone expenses should be original amount less cash back if any.

Message likes : 1 times

Murtaza I Bhagat

Murtaza I Bhagat (Expert)

11 May 2016 You have to set off cash back in telephone expense. Net amount will be your telephone expense.

CA VISHNU GAVKARE

CA VISHNU GAVKARE (Expert)

11 May 2016 There are different types of Benefits given in online transactions. Cash back, Reward points, etc. cash shall be deducted from expenses and net shall be taken.Reward points shall be additional income and shall be accounted the same.

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now