Journal entry

Sales Incentives A/c  Dr. ( Expenses)

    To Value of Gold Coins(so acquired).

Dear Saliq, here incentive received by company so should credited it as income. but where it will debit..? if we debited gold coin as current assets how it will value as on 31st March..?

Oh I thought it otherwise, the answer to your query is as follows

Treatment of Gold coin in the books depend on the intention of management to held such asset:

1.  If Management intend it to be held as Cash Equivalent then it should be recorded in Cash & Cash equivalents. OR
2.  If management intend it to be held as investment then it should be recorded in investment.

Valuation as 31/03 should be

• Cash and Cash equivalent shall be valued as per historical cost i.e. fair value at the time of receipt of gold coins
• If Investment then valued as per AS 13: If Current then at realisable value on 31/03 ; If Long Term then at Historical Cost

Hope this clears your query.

Thank You Saliq