Accounting treatment for foc sales

This query is : Resolved

Sanjeet (Querist)
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24 May 2012 please anyone help me that how to pass accounting entry for free of cost goods sales.

Actually, we are selling free product as per sales scheme(FOC) like buy one get one free.

please tell me if any rule for this treatment.

Thanks

Sanjay Chauhan (IFRS)

Sanjay Chauhan (IFRS) (Expert)
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24 May 2012 In buy one get one free schemes, the sale price per unit gets reduced to half.

If the invoice says Qty 2 price 100, then book each sale @ 50.

Soumitra Basu

Soumitra Basu (Expert)
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25 May 2012 You need not make any acccounting entry for free goods. Only reduce the quantity at stock register. Please note that Input Vat has to be reversed for this purpose.

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Sanjeet

Sanjeet (Querist)
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28 May 2012 thanks for advise basu ji

Sanjeet

Sanjeet (Querist)
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23 December 2012 hi
pls anyone advise me accounting treatment on given below matter:-
we hv paid advanced customs duty worth rs. 3.55 lacs in the m/o nov 12 as DD given to CHA in advance.
now in dec month CHA has returned DD for said amt. to us on account of rule change in customs, now duty will be pay online and we deposited DD in bank and got same amt. back.

then our CHA has paid customs duty worth rs. 3.59 lacs on our behalf and raised debit note for same amt. to us. in dec month.