10 May 2016
As you all know that the wallets like paytm Mobikwik freecharge provides cashback on bill payments at times.
Now Mr X is a individual earning professional income and pays his telephone bill for his office through freecharge. Now in the month of March he pays his entire bill of Rs 1144 through freecharge. Freecharge was running an offer and they credited a cashback of Rs 100. Now in April he pays his bill of Rs 1144, this time using Rs 1044 from his debit card and the Rs 100 cashback obtained last month.
What is the accounting implication for this cashback ? How much shall be charged to telephone expenses ?
11 May 2016
There are different types of Benefits given in online transactions. Cash back, Reward points, etc. cash shall be deducted from expenses and net shall be taken.Reward points shall be additional income and shall be accounted the same.
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