Accounting procedures for gift

A/c entries 635 views 1 replies

tanush2401

Manager - Accounts

21 Points Joined August 2017

Dear Members,

Please note that , my firm has put a lucky draw for the customers and kept a car as a bumber draw prize. So can anybody help me with accounting procedures for the payment we made on behalf of the lucky draw winner, the 30% gift tax we collected from the customer and payment of the same. How we can make the ledger and under which category.

Thanks

Replies (1)

CA Jitender Yadav

Sr. Finance Executive

261 Points Joined February 2013

Customer A/c Dr.
Business Promotion A/c Dr.
To Seller A/c
To TDS payable

Bank A/c Dr.
To Customer A/c

Seller A/c Dr.
Tds Payable A/c Dr.
To Bank A/c