Accounting Entry lucky draw coupns

Hey Devender!

Expenses on lucky draw coupons are generally treated as marketing or promotional expenses because they’re incurred to boost sales or attract customers.

Accounting Treatment:

• Expense Head:

  • "Sales Promotion Expenses" or

  • "Marketing and Advertising Expenses" or

  • "Business Promotion Expenses"

Sample Journal Entry:

If you want to track it separately, you can create a specific ledger named "Lucky Draw Coupon Expenses" under indirect expenses.

This helps in proper expense categorization for financial analysis and tax purposes.