Question

Nirma company gave 30 number of soap free of cost as sample, which are sold for ₹250

Answer 1

Explanation:

The goods received as free samples should be excluded from purchases as we have not incurred any cost for those.

If we have not passed any receipt or purchase entry for such goods, it can just be ignored as it requires no entry if no cash is paid thereto.

If the cost of the same is included in purchases without paying equivalent consideration, then the entry shall be either of the two:

Free sample a/c dr.

To trading a/c

2. Free sample a/c dr.

To purchases a/c