Journal Entry for free purchase........

A/c entries 8397 views 15 replies

Hey Guys Please tell me what will be appropriate journal entry for the following transaction.... :-


There is an offer that on purchase of 200 T-shirt, 50 T-shirt will be free. 

200 T-Shirt purchased by Company @ 200 per unit for employees..


Tell me what will be journal entry...


Thanks in advance...

Replies (15)

purchased for employees uniform

uniform exp. ac--------------dr.

        to party ac.

(being purchase of 200 shirts and received 50 shirts free)

agree with future c.a. this is not the purchase of goods, so no problems just pass the entry suggested by future c.a.

just consider the cost is 40000 for 250 shirts pass journal entry accordingly.

if company is dealer/trader of t-shirts then

purchase a/c ..............................Dr  40000

       To creditor a/c                                            40000

 

if for employees

Stalff  Maintenance (uniform)  a/c ...................Dr 40000

          To Creditor a/c                                                              40000

uniform A/C Dr                 40000

            To Creditors A/C   40000

i have an query pls tell me why we debit the uniform a/c alternatively is it be the staff welfare a/c?and if we considered it uniform a/c then as per income tax act,1961.............the treatment would be different.

There will be Staff Welfare A/c debited in stead of Uniform A/c.

Dr. Staff welfare and Cr party A/c :)

Dr staff welfare a/c    Rs. 40000/-

cr creditor a/c             Rs.  40000/-

Being 200 T shirts purcahsed @ 200/- ad received 50 T shirs free

thanks to all for your replies.....


The doubt is about that free purchase...


That means it will mentioned in naration and no journal entry will be passed for that...???

yes no journal entry for the free items will be passed...

 

but for costing purpose it will reduce the per unit cost of purchase of uniforms....

gross value should be debited, for gross number of items received including the free items.

staffwelfare  A/c-  Dr

  To  Party  A/c

U should pass the entry

 

Purchase A/C dr.............200*200

    To Crs

( Being 200 T shirts purchased and 50 Tshirts free )

in the stores module u should account for 250 T shirts.

 

u should be pass u purchasing entry that is(Journal Voucher)
 
Uniform(Direct Expenses) A/c dr........0.1(Rs.)Dr.
To Party A/c .............Cr 0.1(Rs.)Cr.
 
Second Entry Will be:
 
Uniform A/c.....dr(200 @ 200)           40000/-(Dr.0
 
To Party A/c.................40000(Cr.)


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