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?
Menu
Corporate Gifts Accounting Entry
Replies (2)
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 .
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 .
When customers receive gold coins (e.g., 1 gm, 2 gm, etc.) as part of fulfilling certain order conditions, the accounting treatment typically falls under indirect expenses—specifically as part of sales promotion or marketing expenses. However, it’s important to classify it correctly based on your company’s chart of accounts and policies.
Yes, records of such gifts must be maintained—including customer details, order fulfillment criteria, value of the gift, and date of issue—for audit, tax, and internal control purposes.
For premium and customizable gifting solutions, including corporate gold coins, buy corporate gifts at Consortium Gifts—trusted for over 25 years in India.
Recent Topic
- Reporting STCG on non equity oriented MF
- Section 54F exemption for buying a plot
- My client missed to file ITR 3 for AY 25-26
- Subscription/Membership fees
- Inverted tax gst refund
- Mismatch of pincode and district while registering
- Total income less than 12 lakhs but after processi
- Is Getsvision Solutions right for SMTP bulk email
- Queries on Stock/ETF gifting.
- Adding bank account for the deceased for ITR refun
Related Topics
CAclubindia
