i have a trading company. i buy generators and then sell it.
suppose if one of my customers complain that the generator i sold is not working then the supplier gives the generator free of cost under warranty.
how will i book such generator in my books. the freight in getting the generators to india is borne by me.
what was to be done in question no 1(a)
1) you mentioned "freight in india" does it means that generators are imported?
2) supplier given it FREE of Cost, but what about the old generators? was that get back to you or retained by buyer?
3) as its free goods, u dont have to book any entry except freight and incidental charges, you can reimburse the same from buyer also, on mututual agreement.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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CAclubindia
