Question

Goods given as samples should be credited to ______________.

• A. Advertisement A/c
• B. Sales A/c
• C. Purchases A/c
• D. Closing stock A/c

Answer 1

The correct option is C Purchases A/c

Goods given out as samples should be credited to purchases account and not to sales account, because goods are moving out of the organisation. But there is no inflow of cash because samples are distributed free of cost. Distribution of samples can be for boosting the sales of the company.