Accounting for gift voucher

South Africa Discussion in 'Technical Queries' started by St. Francis, Feb 16, 2017.

  1. St. Francis

    St. Francis

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    My client runs a hairdressing salon. From time to time she donates a gift voucher (value R250 or sometimes R400) as a prize for local sport events, such as bowls and golf tournaments. The winner then comes into the salon to claim the prize - a "hairdo" to the value of the gift voucher. This is not a cash transaction as no cash changes hands. But my client expends hair dressing materials and her labour in providing the service to the voucher winner. So there is a cost to the proprietor. Can this transaction be brought to account and if so, how?
     
    St. Francis, Feb 16, 2017
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  2. St. Francis

    Fidget VIP Member

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    Treat it as an expense in the profit & loss.
     
    Fidget, Feb 18, 2017
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  3. St. Francis

    St. Francis

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    Please remember, there is no cash in this transaction. If you debit an expense account, say "Sales Promotion" what is the contra? What account are you going to credit?
     
    St. Francis, Apr 17, 2017
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  4. St. Francis

    Fidget VIP Member

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    It's basically a sale discounted by 100% so the full amount of it is an expense in your P&L.
     
    Fidget, Apr 17, 2017
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