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Accounting treatment of compensation to client

A/c entries 1529 views 1 replies
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Student CA IPC / IPCC
24 Points Joined June 2013
we sold our products to one client.On using our products our client's machine got damaged.now we are replacing that damaged part of the machine, by purchasing that part and ggiving the same to them.now what is theacounting treatment for that transaction in our books of accounts
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On 06 January 2014 at 12:00 Report
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Asst. Manager- Internal audit
226 Points Joined May 2008

Dear Prasad,

 

Claims for Compensation A/c Dr.

To Supplier of Machine

 

 

If provision for Gaurantee/ Warranty is created by Company then

 

Provision for Gaurantee / Warranty A/c Dr.

To Supplier of Machine

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On 06 January 2014 at 12:30

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