Goods Cost price nbsp ndash Rs 2000 sales price Rs 3500 distributed as free samples among prospectiv......

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General Accounting Principles Accounting cycles Add to Study Deck

Goods ( Cost price –Rs 2000, sales price- Rs 3500) distributed as free samples among prospective customers were not recorded in the books of account

free samples a/c dr 2000
To goods 2000

Advertising exp.a/c dr 2000
To purchases 2000

Advertising exp.a/c dr 3500
To purchases 3500

None of the above

Explanation:

Goods ( Cost –Rs 2000, sales price- Rs 3500) distributed as free samples is for advertisement purpose it is an expense to the business so advertisement a/c will be debited and purchse a/c will be credited with cost price

Advertising exp.a/c dr 2000

To purchases 2000

By: Munesh Kumari

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Richa Goyal

Isme not pucha tha so answer is depicted wrong here

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