A/C entry

In my opinion, there should be no accounting entry.

There shall be no accounting entry for receiving the goods for repair. However,expenses incurred on repair shall be debited to corresponding expenditures.

Further, the follwoing entry may be made at the end of financial year to incorporate the goods so received in the balance sheet.

Goods received for repair                                         Dr.

        To Customers' a/c for goods held for repair

at the beggining of next financial year, the above entry shall be reversed.