AMIT ADHIA (ca) (110 Points)
30 January 2009ACTUAL WARRANTY INCURRED DURING THE YEAR WILL BE INSERTED INTO WHICH ACCOUNT HEAD ? CAN U EXPLAIN WIHT ONE EXAMPLE ?
AND PACKING CHARGES WILL BE CLUBBED IN WHICH EXPENSE/ACCOUNT HEAD ? MEANS MANUFACTURING ,ADMINISTRATIVE ,SELLING AND DISTRIBUTION OT FACTORY OVERHEADS . ?
Prakash Popat
(3134 Points)
Replied 30 January 2009
Warranty Could be part and parecel of selling/Marketing products,Packaging is must for selling products,and could be taken as Productions cost/manufaturing cost,Extra packaging costs Could be taken as selling expenses.Such as packages for Gifting the products.
CAclubindia
