Journal entry

Yes i agree with all those people who state it should not be debited to drawing a.c

Goods distributed as sample is for promotional activity and hence debited to Business promotion .or advertisement a.c as the case may be.

Further with regards to the stock, since it is already used as sample question of stock doesnt arise.

 

Further if inventory accounting is maintained and this is previously computed to stock then obviously it would be routed through stock records by crediting the stock account so as to show closing stock at correct figures and then the entry for distributed as sample will be shown.

Advertisement A/c .......Dr.

To Purchases/Stock

Those one who are suggesting for stock account, if can explain about following doubts:

Treatment of Stock in main set of financial books(other than stock register,cost books)

1.whether is there any ledger account are open in books of account relating to stock...???

2.if yes, then how much i mean to say only one or two seprate for opening or closing....???

3.if yes, then what entry are entered in stock ledger...bec when we purchase goods,we debit purchase and in case of sales we credit sales account...????

4.if stock account are not open in books of acconts then how opening stock comes in trial bal. (bec trial bal is prepare from balances of ledger accounts).....????

I have my view, which may be correct or not...??? but i want to ask my friends and students and member of icai .......???

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