Goods distributed for samples

As far as my knowledge is concerned the Correct entry will be:

Adverisement    A/c           Dr.

                  To Purchase A/C

Originally posted by : nikita
	As far as my knowledge is concerned the Correct entry will be: Adverisement    A/c           Dr.                   To Purchase A/C

 Hi Nikita,

Even i too have same opinion

Also ensure that you have reversed Input vat claimed as per the state VAT Rules.

Subramanya

I feel this entry will not work out for us as we purchase raw materials and sell finished goods. We want to deduct the number of stocks distrubted for sample so your entry will not work out. Right now we enter Goods distributed free sample a/c Dr. Sale A/c Cr. [Sale a/c is inventory values affected and the stocks are deducted while entrying it]