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Free goods issued by customer

CA Final 211 views 4 replies
What will be accounting treatment if goods received from customer free of cost on a contract to install a system for said customer..
Whether such free goods received to be recorded in our books?? In case goods is to be recorded than on what cost?

Guys pls put some light on this..


Thanks in advance.
Replies (4)
Free goods should be recorded at A Nominal Price
Can u tell in which accounting policies or any other write up says that we shud book at nominal price?
It is given in AS 10 (Revised) PPE
Free Assets Received should be recorded at a nominal value.(i.e. 10,100,1000,etc.)
if the free goods directly form part of installation, then the same shall be recorded at nil cost and not shown separately but included under the value of machine


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