(v) Goods worth * 3,000 were distributed as free sample, what is the journal entry
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Answer:
Charity A/c............... Dr. 3000
To Purchases A/c. 3000
(Being goods distributed as free sample)
Explanation:
Distributing as free sample/donate always will be charity A/c and goods were purchased at past which is distributed at present. So it will be the answer.
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