Cash Back from purchased

Discussion in 'Technical Queries' started by Sharif Ul Alam, Jul 15, 2017.

  1. Sharif Ul Alam

    Sharif Ul Alam

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    Our company is an advertising & event management company. we had bought a tender. But we did not participate in competition & got cash back. How can I record this transaction in accounting system. Please give me the answer based on golden rules of accounting.
     
    Sharif Ul Alam, Jul 15, 2017
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  2. Sharif Ul Alam

    Drmdcpa VIP Member

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    It should reduce the expense of the purchase. If the purchase was capitalized in a different year such that you cannot reduce the price on the books, record the cash as miscellaneous income. Alternatively if the purchase was capitalized it could be treated comparable to an impairment, but this would not be preferred.
     
    Drmdcpa, Aug 3, 2017
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