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While doing a promotion activity of giving more than 1 pack at discounted price example 2 for 20, where 1 is for 15. What is accounting treatment?

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.

Accounting Accountancy Accounting and Finance
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Question added by Huzefa Chudawala , Finance Manager , Baniyas Co Operative Society
Date Posted: 2015/06/02
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PRADEEP VELAYUDHAN
by PRADEEP VELAYUDHAN , Chief Accountant , Super Group

selling price of2 pack-20---------------

Abbas Bharmal CA Inter M com Looking for New
by Abbas Bharmal CA Inter M com Looking for New , Senior Accountant , Msheireb Properties

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.

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