20 November 2025
Dear Sir, we have purchased Gold Coins for reimburse against Sales promotion. My doubt is that whether we can show them in Inventory or booked in Sales Promotion expenses.
Sir, Thank you for immediate reply and though they are not for immediate reimbursement how can we show them in Inventory as Inventory means which the goods we trade and gold coins we are not trading.
can we maintain seperate data for them for disbursement?
20 November 2025
Think you have cash or bank balance for the same expense. How will you show it? It will be shown in Cash book or the Bank book. Similarly here you have gold instead of cash or bank balance. It will be shown exactly in similar manner. Keep it in inventory till you disburse but under a separate head with clear highlight of the intention. When you disburse, respective expense debit to Gold Inventory Credit.
20 November 2025
Thank you Suresh Sir for reply, but if we shown Gold coins in Inventory, isn't our Gross profit will be effected or can show the same in Prepaid expenses when we expended and we will reverse concern expenditure head when we disburse the same gold coins to our dealers. is it right treatment, please suggest me
CAclubindia
