Customers who fulfill certain terms in an order, are given gold coins of 1 gm, 2 gm, etc.
What is the accounting treatment for it? Is it to be added to indirect expense directly? Is it required to maintain any records of such gifts given?
Show as Business pramotion Expenses , under Indirect expenses profit and loss account
Business Pramotion Expenses A/c Dr
To Cash / Bank A/c Cr
( Gold coin given as gift for Business pramotion)
Maintan separate record quantity wise also as Gift given .
CAclubindia
