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Goods given for promotional activity as free of cost

Bablu Kumar Jha (Accounts Manager) (266 Points)

28 February 2017

Hello Professionals / Experts and Folowers,

Could you please help me out for below accounting entry matter :

If i am given my products as free of cost to X company / persons, what journal entry should i done ? in the case of trading business while i am maintaining stock in tally erp 9.

Regards,

Bablu Kumar Jha

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2 Replies

e.mohan goud (Paid Asistant) (141 Points)
Replied 28 February 2017

Credit the Purchase account with cost

Debit the Respective account for which it is give like promotional exp or Adv. expense .....

Bablu Kumar Jha (Accounts Manager) (266 Points)
Replied 28 February 2017

Thanks E Mohan for your suggetion,

Could you please let me know in the trading a/c i have shown purchase as purchase against F form, if i have credited purchase a/c then against F form will be reduce for the same and how can i reconcile our purchase a/c while i'll going to issue F form.