Stock of gifts

Yes. Stock of gift intended for resale can be treated as inventory

Inventory dr.

Gain on promotions cr

So you distributed diwali sweets and clothes and some of it left. Not a big problem. It doesnt qualify as inbentory. Just 

Entertainment expenses dr 100

Cash cr 100

Then if 10 is left 

Current asset at hand dr 10

Entertainment expenses cr 10

Any tangible asset, product, or other sales item that is held for future resale is considered inventory.

Wait a minute

Dr. Gift expense

Cr. Cash 

What is left over is inventory if reasale or

Waste. 

Until the disposal youll hold it as current asset. 

The only mistake with thw first entry is expenditure is credited in the last line because the dr. Gift expenses is revwrvwsed. I used entertainment expenses instead of gift expenses