accounting of samples

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Premnath. M (Querist)
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23 November 2008 a company manufacturing medicines. and to sell their products they give samples of those product to doctors.so how the cost of samples to be accounted. for eg:

the opening balance is as follows:
Goods for sale=Rs. 50
Samples= Rs.10
Cost of goods produced:
For sale= Rs.150
Samples= Rs.20

Sales(Rs. 175 cost)= Rs. 250

Closing Stock:
For sale= Rs.25
Samples= Rs. 15
here Rs.15 worth samples were given to doctors and my doubt is whether we should disclose the samples given to doctors in the credit side of Trading A/c or not.

If my question is not clear pls tell me

CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Expert)
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24 November 2008 The cost of sample distributed is not an item of Trading Account. The same should directly be charged as a Sales Promotion Expenses and its the Raw Material and Manufacturing cost allocable to the samples be directly booked to the aforesaid head of account.