treatment of free goods

Others 563 views 3 replies

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

Replies (3)

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...............................


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register