What will be the accounting entry for Goods returned to factory for repair work initially sold on warranty
Rajesh
(Articled Clerk)
(50 Points)
Replied 09 December 2010
In my opinion, there should be no accounting entry.
CA Anshu Agarwal
(B€ @LW@¥$ ]-[@Pp¥)
(1832 Points)
Replied 26 December 2010
There shall be no accounting entry for receiving the goods for repair. However,expenses incurred on repair shall be debited to corresponding expenditures.
Further, the follwoing entry may be made at the end of financial year to incorporate the goods so received in the balance sheet.
Goods received for repair Dr.
To Customers' a/c for goods held for repair
at the beggining of next financial year, the above entry shall be reversed.
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