Dear Sir,
How to prepare invoice when we give free materials as a promotional offer, eg if some one buys 100 pcs,we give 10 pcs free of cost.
Please advice if we need to charge vat for free pcs. Also how should we pass the accounting entries in the books.
Very urgent
You ca make invoice as follows
100 units @ xxx = Rs:
10 Units @ F.O.C = (Free of Cost) -
Taxes & Duties for 100 units.
This will help you for inventory purposes also
Dear Sir
The entry can be made in Tally as follows,
Party A/c Dr
To Sales A/c
Qty Rate Amount
110 * Dont put anything (100*Rate)
(Being sales made to party & 10 units given as free)
Thanks I hope this hepled u,
R Shriram.
nice Q...............................
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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