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
In view of company being faced with huge write-downs to the carrying values of their intangible assets, what are the current AASB reporting requirements for intagibles and does the

Hi, I work at a non-profit that recently received a $250,000 stock donation which is payment for a $1M pledge. The donor has written in an e-mail that he would like to give us th

how many tipe of accounts

As of 2005, consolidated financial statements of listed companies in the European Union are required to be prepared in accordance with IFRSs. Complete the following accounting p

Imputed Interest - If no interest or an unrealistic amount of interest is charged in a salve involving certain kinds of deferred payments, then transaction would be treated as if r

journal entry and balance sheet for acquisition

Explain the procedure followed in government system of accounting in india

Hello, I am interested in help on an ACCO 310 case which is due on Tuesday the 13th at 12 PM. Please contact me at your earliest convenience and hopefully we can work something ou

DOES THE ADOPTION OF IFRS BY DIFFERENT COUNTRIES NECESSARILY MEAN ACCOUNTING PROCEDURES AND PRACTICES THEY ADOPT WILL BE CONSISTENT AND COMPARABLE INTERNATIONALLY

Question 1: Businesses have become increasingly aware of the environmental implications of their operations, products and services. (a) Describe why businesses should be con