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While doing a promotion activity of giving more than1 pack at discounted price example2 for20, where1 is for15. What is accounting treatment?
Example:
Cost of1 pack -8
Selling price of1 pack -15
Selling price of2 pack -20
Consider that pack of2 with RSP of20 is new inventory item.
selling price of2 pack-20---------------
There will no accounting treatment for discounted price only profit & sales volume will be reduce of the company. In both the case company is earning the profit, selling of one pack profit will be7 and selling of2 pack profit will be4.