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As 29 ipcc

AS 385 views 4 replies

What Will be the journal entry if sales warranty provision made in current year and next year under AS 29.

Replies (4)
p&l ac. dr.
to prov for warranty

When u make a provision - Warranty expense..dr -- To Warranty liability 

When customer claims warranty - Warranty liability...dr -- To inventory/ cash 

 

Value will be the cost of goods under warranty sold....major difference in indas and as in case of warranty accounting is discounting....indas allows discounting of future probable cash flow due to warranty claim

the above specified entry is to be recorded as on 31 St March for unexpired warranty


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