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All direct expenses are ___ to Trading account and all indirect expenses are debited to Profit and Loss account
  • a)
    Credited , Debited
  • b)
    Debited, Credited
  • c)
    Credited , Credited
  • d)
    Debited, Debited
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
All direct expenses are ___ to Trading account and all indirect expens...
Direct expense are those... Which are directly helping in the production.. Or manufacturing (eg. Freight, octri, factory rent etc) so they are debited to the trading account... And indirect expense are those which are indirectly helping in production process (eg advertisement expenses, carriage outward, postage etc) so they are debited to profit and loss account
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Community Answer
All direct expenses are ___ to Trading account and all indirect expens...
As Direct expenses are directly related to production , so they go in TRADING A/c
& Indirect expenses are reverse  of Direct Expenses, so they go in P&L A/c.
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All direct expenses are ___ to Trading account and all indirect expenses are debited to Profit and Loss accounta)Credited , Debitedb)Debited, Creditedc)Credited , Creditedd)Debited, DebitedCorrect answer is option 'D'. Can you explain this answer?
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