30 July 2012
Dear sir I purchased a cellphone and paid 10000. later after two months i received a bag worth 1000 from the cellphone vendor. how should i record this bag in my accounts. Is it discount received or misc. income? . what if the item purchased is goods.Give me the entries also.
30 July 2012
if bag received for cell phone purchase then it should be deducted from cell phone cost by crediting cellphone and debiting bag a/c and if it was a goods then debit stock and credit cellphone
30 July 2012
Materiality is the KEY. Are you going to claim depreciation on cell phone? In normal cases, it is a gift. not taxable in the hands of donee. If you are showing it as goos... then the better treatment would be gift received rather than misc income. This will be added below gross profit line.
CAclubindia
