Hi, My company uses the telephony service from the local wireless provider. Through our usage of their service we accumulated loyalty points & the wireless provider announced that anyone who redeems the point upto a certain threshold will be offered a free mobile phone. Our company had lots of point & we took this oppurtunity to redeem points. Therefore we received a brand new mobile phone. How do we account this transaction in book of accounts?
Menu
Winning company received Gift
Replies (1)
The transaction has been effected wher infow of a goods wud b of a capital nature if being purchased.
here, since you havent purchased, its still to be disclosed as an asset in the B/S. such asset needs to b disclosed at a nominal value of Rs.1/-. This is so to disclose such an asset in Financial statement and at a value not material for cash outflow. Refer AS10
Recent Threads
- Exports against INR PO payable by Domestic Company
- Which websites are best for government exam prepar
- TDS on maturity payment of LIC of india
- ITR2 Gold ETF short and long term
- Query under faceless assessment
- Purchase of business
- Refund of ITC for advance paid to overseas supplie
- Clubbing query (when gifts given to multiple fami
- Transfer Pricing Audit Upload Form 3CEB - Income T
- Only a Few Pages Indexed by Google Despite Sitemap
Related Threads
CAclubindia
