Where The Account Entry Should Be Placed

[Elaine_Law]

I now handling a small company which its nature are distribution of ice cream and related product. Sometime it got import some stock from other country for sales purpose. He also got held some event, such hire promoter to promote his product at mall.

When he purchase item purpose for sampling purpose, where the accounting entry should be placed?
When he make the payment salary for promoter, where the accounting entry should be placed?

 

[Sequencetheta]

Is the promoter an employee or contractor? Also does the COA have an account for internal sales or some sort of internal expense account?

 

[Naeem Baig]

Promoter payment: it should be noted as expenses and it should be charged to Marketing & Promotion Expenses

Items purchased for sampling: it depends on sampling activity. If sampling items are purchased often, then when the items are purchased it should be taken into STOCKS account and it should be treated as Asset and after samples are given to promoters or customers or shops etc then after distribution of samples that much amount to should be treated as Expense and should be charged to SAMPLING EXPENSES