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What entry will be passed in the general journal for goods taken as a sample?

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تم إضافة السؤال من قبل Mohammed Abdultwab , Chief Accountant , City Star Central Market Co.
تاريخ النشر: 2016/04/18
Uma Mahesh Jami
من قبل Uma Mahesh Jami , Team Lead , Infovity India PVT LTD

Free samples a/c dr

Inventory a/c cr

Jasna Majeed
من قبل Jasna Majeed

Inventory Account CR is the entry that will be passed in the general journal for goods taken.

Rehan  Ahmad
من قبل Rehan Ahmad , HR Executive , Sayban Group

Free Goods Account DR

Inventory Account CR

Sameer Ismail Khidir
من قبل Sameer Ismail Khidir , Senior Accountant , Al Salaam International Hospital

We passed entry as

G & A Dr.

Inventory A/C Cr.

Fadi Battah
من قبل Fadi Battah , Admin And Finance Manager , Beijing for Import & Export LLC

The first thing to work out here is whether free samples would even be recorded in the accounting records. In other words, do free samples qualify as assets? free samplePin it!Share on Facebook The way to work out a question like this is to go back to the basic definition of an asset and its recognition criteria. Remember, an asset is a possession of a business that will bring the business benefits in the future, or basically anything that will add future value to your business. And the full test of whether something is an asset is: 1. DOES YOUR BUSINESS OWN/CONTROL IT? 2. WILL IT BRING YOUR BUSINESS BENEFITS IN THE FUTURE? 3. CAN YOU VALUE IT ACCURATELY? Based on the above criteria, free samples should be classified as assets with a value and kept in the accounting records. The value of the free samples would be whatever it cost your business to buy them or get them made. When a member of the public takes a free sample, one could record the following: DR Free samples consumed (expense) CR Free samples (asset) The basic idea in the entry above is that first you have these free samples in your records as assets. When you give them away you cancel the assets and record the expense or loss related to its use/consumption. The amount of the expense/loss is equal to the value of the free samples given away.

Naveed Iqbal
من قبل Naveed Iqbal , Senior Accountant , Hamdan AL Shamsi Lawyer & Legal Consultants

Marketing expense Dr

   Inventory(purchases) Cr

Fouzan Ali Fida Ali Azami
من قبل Fouzan Ali Fida Ali Azami , Tower Lead ATR / R2R , IFFCO GROUP OF COMPANIES

If Sample is quality purpose then

Quality expense debit and Inventory Cr.

Mohsin Iqbal
من قبل Mohsin Iqbal , BDO of MCB Bank - ENJAZ BANK KSA , Enjaz Bank

No cash involves in this at all but for keeping in Record simply;

 

Sample or Advertisement A/C - Dr.

To Purchase A/C 

 

مستخدم محذوف‎
من قبل مستخدم محذوف‎

There is no cash involved and it is an expense for the company. 

You could record it by debiting any related expense account such as Advertisement etc and crediting purchase ac

Advertisement A/C Dr.

To Purchase A/C

Yvette Camacho
من قبل Yvette Camacho , Sales Associate , Kareem Trading Azadea Group

enable you to create, review and approve journal. with supporting documents journal. can be posted sub ledger or pre posting validation.

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