Goods are distributed as free samples worth Rs. 50,000 for advertisement purpose. Which of the following journal entry would be passed:
- a)Advertisement A/c Dr. 50,000
To Purchases A/c 50,000 - b)Purchases A/c Dr. 50,000
To Advertisement A/c 50,000 - c)Advertisement A/c Dr. 50,000
To Sales A/c 50,000 - d)None of the above
Correct answer is option 'A'. Can you explain this answer?
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Prashant Sharma
Jul 06, 2018 |
It's answer A because goods are distributed for advertising by the firm and every good when taken out , purchase a/c is debited except for the sale Condition so entry is Adv Suspense a/c Dr To Purchase a/c
It's answer A because goods are distributed for advertising by the firm and every good when taken out , purchase a/c is debited except for the sale Condition so entry is Adv Suspense a/c Dr To Purchase a/c
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It's answer A because goods are distributed for advertising by the firm and every good when taken out , purchase a/c is debited except for the sale Condition so entry is Adv Suspense a/c Dr To Purchase a/c
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