Question:
Goods costing \( \₹ 15,000 \) were distributed as free samples. This will be recorded in:
Goods costing \( \₹ 15,000 \) were distributed as free samples. This will be recorded in:
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Distribution of free samples is considered a selling and promotional expense.
Updated On: May 31, 2026
- Sales Account
- Purchases Account
- Advertisement Account
- Drawings Account
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The Correct Option is C
Solution and Explanation
Concept:
Goods distributed as free samples are treated as advertisement expenses.
Step 1: Pass the journal entry.
\[ \text{Advertisement A/c Dr.} \] \[ \text{To Purchases A/c} \] Hence, free samples are debited to: \[ \boxed{\text{Advertisement Account}} \]
Step 1: Pass the journal entry.
\[ \text{Advertisement A/c Dr.} \] \[ \text{To Purchases A/c} \] Hence, free samples are debited to: \[ \boxed{\text{Advertisement Account}} \]
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