faru faru (b) (108 Points)
11 May 2011
i have a trading company. i buy generators and then sell it.
suppose if one of my customers complain that the generator i sold is not working then the supplier gives the generator free of cost under warranty.
how will i book such generator in my books. the freight in getting the generators to india is borne by me.
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 11 May 2011
1) you mentioned "freight in india" does it means that generators are imported?
2) supplier given it FREE of Cost, but what about the old generators? was that get back to you or retained by buyer?
3) as its free goods, u dont have to book any entry except freight and incidental charges, you can reimburse the same from buyer also, on mututual agreement.
CAclubindia
