cashback
This query is : Resolved
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 ?
11 May 2016
Cash back should be treated as discount and telephone expenses should be original amount less cash back if any.
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11 May 2016
You have to set off cash back in telephone expense. Net amount will be your telephone expense.
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.
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