Stock of gifts
Atharv Sankliya (1323 Points)
24 October 2022
does stock of gift is considered as inventory?
Atharv Sankliya (1323 Points)
24 October 2022
Yasaswi Gomes new
(Finance )
(4492 Points)
Replied 24 October 2022
Yes. Stock of gift intended for resale can be treated as inventory
Inventory dr.
Gain on promotions cr
Atharv Sankliya
(1323 Points)
Replied 24 October 2022
Yasaswi Gomes new
(Finance )
(4492 Points)
Replied 25 October 2022
So you distributed diwali sweets and clothes and some of it left. Not a big problem. It doesnt qualify as inbentory. Just
Entertainment expenses dr 100
Cash cr 100
Then if 10 is left
Current asset at hand dr 10
Entertainment expenses cr 10
Marry Mizrahi
(6 Points)
Replied 09 May 2023
Any tangible asset, product, or other sales item that is held for future resale is considered inventory.
Yasaswi Gomes new
(Finance )
(4492 Points)
Replied 09 May 2023
Wait a minute
Dr. Gift expense
Cr. Cash
What is left over is inventory if reasale or
Waste.
Until the disposal youll hold it as current asset.
The only mistake with thw first entry is expenditure is credited in the last line because the dr. Gift expenses is revwrvwsed. I used entertainment expenses instead of gift expenses
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