In case refregerator given by any coke, pepsi, ice cream companies for storing coke, ice creams, choklates etc. to shopkeeper. Then how it deal in the books of companies.
Please suggest accounting treatment
16 Replies
IMAM
(ARTICLE ASST.)
(371 Points)
Replied 27 December 2013
This type of refregirator are give by company parmanantly and it should be show as an asset of that owner of person.
amal ganatra
(amal ganatra)
(33 Points)
Replied 27 December 2013
Ao whats the final conclusion .?????
Suman Kumawat
(Article)
(612 Points)
Replied 27 December 2013
Accounting in books of company.. it should be shown as asset with the consignee!!
Divyesh Gohel
(Tailor)
(50 Points)
Replied 27 December 2013
but if we give refrigarator to many shopes than what will the treatment ?
Akash Jain
(CA Final Student)
(261 Points)
Replied 27 December 2013
It will be kind of lease(Operation or Finance as per the agreement or contract signed)
Suman Kumawat
(Article)
(612 Points)
Replied 27 December 2013
If given to many shopkeepers permanently then should be shown in profit and loss account in the debit side..
If only to some temporarily then asset to consignee..
Hope this cleared all yur doubts
NOUFAL
(ACCOUNTANT)
(762 Points)
Replied 27 December 2013
The company can treat at as sales promotion expeses like, Advertisment Exp etc........ if it is not taken from that shop by terminating the business. Sometimes the shopkeeper will get this type of item in concessional rate, at that time its treated as a exp. If it given by lease, the company will treat the account in permenent nature.
Divyesh Gohel
(Tailor)
(50 Points)
Replied 27 December 2013
@ Noufal if it is promotion exp what is the treatment?
NOUFAL
(ACCOUNTANT)
(762 Points)
Replied 27 December 2013
in Company
Advertisement Exp A.c Dr (indirect Exp)
To Refregerator (Supplier party). (current liabilities)
in Shop
Refregerator A.c Dr ( Fixed Assets)
To Gift A.c ( Indirect income)
AYUSH
(Student CA Final )
(146 Points)
Replied 27 December 2013
I think only financial transaction recorded in the book but as mr.NOUFAL said above and journalise the entry for gift
I think if he receive it as gift then show that in B/s with nominal value???
CA Dhruva Kalamanji
(Chartered Accountant )
(1996 Points)
Replied 27 December 2013
Dear vikram,
In the books of compay
Part I - if the refrigirator is given permanently to shop keeper without collecting money then it is
Treated as promotional exp..
PartII - if the company still enjoys the ownership on the refrigirator then only depreciation and maintainance exp and asset is disclosed in the balancesheet at wdv
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