Treatment of samples to customers

This query is : Resolved

srinu (Querist)
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28 July 2011 Dear all on of my claint has pharma business so they give some stock of materials are given to customers for samples how it will be accounted in tally pls urgent

CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)
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27 September 2011 well it has to be shown as closing stock lying with clients.

CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)
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27 September 2011 it can also be shown as Closing Stock- with client as free sample.

CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)
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27 September 2011 the jv can be
Free Samples-Client Name A/c DR
To Sales on Approval basis A/c

when the goods are issued as free samples

CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)
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27 September 2011 when the goods are accepted by the client as Sales

Sales on Approval basis A/c DR 100
Client Name A/c DR 100
To Free Samples-Client Name 100
To Sales A/c 100

CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)
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27 September 2011 well the above accounting will giva you following benefit
(a) at the same time you can come to know, to which client u have issued how much amount as free sample as the account will be debited when free Samples are issued and credited when accepted by the client

CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)
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27 September 2011 also Client Name will be debited only when Sales is made to the client so client name will show that balance only which he is reqd to pay to the company

CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)
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27 September 2011 Sales will be booked only when the sales is actually made to the client

CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)
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27 September 2011 Sales will be booked only when the sales is actually made to the client

CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)
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27 September 2011 also the free sample group will show you the closing stock at sales price which can be easily converted at Sales price

CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)
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27 September 2011 if having any doubt plz ask in the above system