Direct expenses, Accounting Standards

Direct expenses comprise all those expenses incurred in bringing the goods to the place of business or trade or in-production process till the goods are placed in saleable places. The subsequent expenses may be taken as direct expenses:

1. Wages paid to workers concerned in production are debited to the trading account given the manufacturing account is not prepared individually

2.  Carriage and freight inwards are transportation expenses incurred to take the goods or raw material to the position of the business or to the firm's go down/factory. These expenses, if paid or outstanding then are debited to trading account.

3. Octroi is paid while goods enter municipal limits. It paid upon goods purchased is a direct expense and is debited to trading account.

4. Custom duty paid upon importing goods for selling purposes is debited to trading account. Whether the duty is paid on sales export, this amounts to selling expenses and is shown in the loss and profit account.

5. Factory rent, insurance, lighting and power and heating are the expenses incurred to convert raw material in finished goods. These expenses are debited to trading account.

Posted Date: 4/3/2013 6:18:17 AM | Location : United States







Related Discussions:- Direct expenses, Assignment Help, Ask Question on Direct expenses, Get Answer, Expert's Help, Direct expenses Discussions

Write discussion on Direct expenses
Your posts are moderated
Related Questions
Government Accountability Office (GAO) - Accounting and auditing office of the United States government. An independent agency which reviews federal financial transactions and repo

These are assets or things of value without physical dimensions. They cannot be touched; they representing intrinsic value without material being and they are incorporeal. One of t

Direct expenses comprise all those expenses incurred in bringing the goods to the place of business or trade or in-production process till the goods are placed in saleable places.

This time of year we all here about football. For me it is the bad news of how poorly the Buffalo Bills are performing. Hopefully your favorite team is doing well. One thing we all

3. Solve the following Linear Programming Problem using Simple method. Maximize Z= 3x1 + 2X2 Subject to the constraints: X1+ X2 = 4 X1 - X2 = 2 X1, X2 = 0

Wise Owls, an NFPO, began operations at the beginning of 20X1 to provide free tutoring and homework assistance, as well as a nutrition program, to low-income immigrant children. T

1)   List every item debited or credited in the Profit and Loss account. 2)   Illustrates the difference among Trading Account and Profit and Loss Account. 3)   Illustrates t

In 1984 the Governmental Accounting Standards Board (GASB) was recognized with a fulltime chairperson and four part-time members. The GASB issues statements on financial and accoun

In previous section you learnt about the accounting involves four stages: (i)  recording the transactions, (ii)  classifying-the transactions, (iii) summarising  the trans

Review and discuss what the general rules are for agricultural produce using US GAAP and IFRS.