Discount after purchase

This query is : Resolved

harish babu (Querist)
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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.

thanks®ards

harish

CA Lokesh Pokharna

CA Lokesh Pokharna (Expert)
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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

Amol S Joglekar

Amol S Joglekar (Expert)
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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.

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