Reason for this journal!!!??

the entry for distribution of goods as free sample is

Advertisement A/c Dr          xxx
           to purchase A/c                    xxx

                                                                    need reason for purchase A/c (Cr)   

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Originally posted by : aravind

the entry for distribution of goods as free sample is

Advertisement A/c Dr          xxx
           to purchase A/c                    xxx

                                                                    need reason for purchase A/c (Cr)   


This entry will be passed if we utilised our own purchased goods for advertisement purpose instead of selling.

Since we have not sold the stock but consumed reduce the purchase A/c

cool!!! thank you sir!!

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