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Warranty claim expenses

Ks (Ac) (138 Points)

14 February 2022

Expenses due to warranty claim

If expense due to warranty is Rs 20000 and the delivery charges are Rs 100 to deliver it to the customer so what is the accounting treatment for it

Does the delivery charges are include in warranty expenses???

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4 Replies

prasad Nilugal ( GST Practitioner & Accounts ) (14546 Points)
Replied 15 February 2022

No Delivery Charges should not be included in the warranty charges , both are saparate leaders , because every time you are going to charge delivery charges in other cases also .

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Ks (Ac) (138 Points)
Replied 15 February 2022

means we have record delivery charges in delivery charges a/c ( where all the delivery exp is recorded)

and what if the person who claim the warranty lives in other city so the travelling expense to travel to the customers place is recorded in which account in travelling expenses or warranty claim expenses ??

pls reply !