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Goods distributed for samples

stufflearn (Practioner) (102 Points)

15 February 2010

Hi, Some goods we distribute as samples. I wonder what journal entry you make for the transaction. And how you would adjust the stock aslo? Right now..we enter goods distributed as free samples A/c Dr. Sales A/c Cr. Sales A/c is inventory values are affected so we deduct the goods from here..... Any better ways to do it?

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3 Replies

CS Asmita Mehta (CS) (308 Points)
Replied 15 February 2010

As far as my knowledge is concerned the Correct entry will be:

Adverisement A/c Dr.

To Purchase A/C

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subramanya (Professional) (907 Points)
Replied 16 February 2010

Originally posted by : nikita
	As far as my knowledge is concerned the Correct entry will be: Adverisement A/c Dr. To Purchase A/C

Hi Nikita,

Even i too have same opinion

Also ensure that you have reversed Input vat claimed as per the state VAT Rules.

Subramanya

stufflearn (Practioner) (102 Points)
Replied 19 February 2010

I feel this entry will not work out for us as we purchase raw materials and sell finished goods. We want to deduct the number of stocks distrubted for sample so your entry will not work out. Right now we enter Goods distributed free sample a/c Dr. Sale A/c Cr. [Sale a/c is inventory values affected and the stocks are deducted while entrying it]