I am working as a Chief Accountant for a Trading Company in Tanzania, who are in the of Spirits & Wines
( Dealers) in Tanzania. My company is issuing free samples to Hotels & Safari Companies for business promotion. We are using Tally ERP. The previous Accountants have booked the entries Debiting Marketing-Free Samples a/c and Crediting the Sales. I am not convinced with the entries. Hence I would like to know what is the correctreatment for free samples. I would be happy if any CA give his opinion on the treatment.
CAclubindia
