Accouting treatment for free items gift to employee
This query is : Resolved
03 July 2012
Dear All
We have a stock item in our invetory as on 31/03/2012 of value Rs. 10000/- but due to bad condition that can not be sold to any one. so we have given that to our one of employee without any money consideration. so could you plese how can we treat it in our account. what account need to be debit to charge P & L?
please suggest.
thanks
bhoop singh
We have a stock item in our invetory as on 31/03/2012 of value Rs. 10000/- but due to bad condition that can not be sold to any one. so we have given that to our one of employee without any money consideration. so could you plese how can we treat it in our account. what account need to be debit to charge P & L?
please suggest.
thanks
bhoop singh
03 July 2012
First off all, while finalising March 31, 12, you will have to value the inventory at cost or NRV, whihc ever is lower. Hence most of the down side will come as impairment.
Balance value will come as a debit in next years P&L in the form of decrease in inventory with no correspinding revenue.
Balance value will come as a debit in next years P&L in the form of decrease in inventory with no correspinding revenue.
03 July 2012
Thanks Mr. Sanjay
Could you suggest an account head name for debit to p & l
Could you suggest an account head name for debit to p & l
03 July 2012
In March it will be "inventory written off".
In next year it will be in "Change in inventory".
In next year it will be in "Change in inventory".
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- GST on export of services and Input Credit
- ITC temporary reversal and reclaim
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- Applicable TDS rate for sale of property in Nov 2024
- Inventory of finished goods
- GST ON EXPORT COMMISSION
- Should I report my US salary for January, February, March in Schedule FA?
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- Tds on building rent monthly
- Sale of property furniture sale
- Confusion around Form 26QB fields
- Adjustment entry in the case of Individual and HUF on 31st March
- Stock difference tax applicable on composite rate or normal rate
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
Trending Online Classes
CAclubindia
