There is Construction company which deals with construction of buildings and sale of the same.The business entity purchased cement, bricks and steel from the supplier. so my question is under which head these purchased items are shown, under the head "Direct Expenses" or under the head "Purchases" in P&L A/C.
31 July 2013
First of all Thanks for your rply sir.
So, purchase of cement, Bricks and Steel are shown under the head "Purchase" in P&L A/C. Which type of expenses are come under "Direct expenses" Except Direct wages.
CAclubindia
