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A electronic shop mistakenly ruined/damaged

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a electronic shop mistakenly ruined/damaged the customer's  TV  worth RS 200,000 so what are the accounting treatment for it and journal entries 

question 1 - the shop have compensate the customer with new TV of same price i.e. Rs 200,000

question 2 - the shop also keep the damaged TV so they can use its part 

 

Replies (4)
For Damage TV pass entry

Damage TV set A/c Dr
To Purchase A/c Cr
( TV set damage reduce from purchase)
Also reduce 1 TV set from stock journal.

for new TV set pass entry

Trade Debtor's A/c Dr
To Sales A/c Cr
To CGST A/c Cr
To SGST A/c Cr
( Booking of sales entry )





F

no ! the firm provide th TV for free of cost means the firm bears this cost as expense so what are journal entries and does the damaged TV recorded as assets to the firm 

If purchase and sale and purchase of TV set , then it should be Stock item in the books , not Asset I think .

ok but what are the entry if the firm provide the tv to the customer for free to compensate the customer for his damaged tv ( which is damaged due to firm's fault )


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