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Manufacturing account

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Querist : Anonymous

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Querist : Anonymous (Querist)
01 September 2011 i want to know when manufacturing account is prepared as one of our client is engaged in manufacturing of pet bottles but instead of preparing manufacturing account he prepares trading and profit & loss account for the last five years.i also want to know as he prepare trading a/c he is charging factory rent as indirect expense which I think is wrong. plz reply soon. thanks in advance.
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CA Pushpendra Gaur

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CA Pushpendra Gaur (Expert)
26 September 2011 No, charging factory rent as Indirect expenditure is right as the paying of rent has nothing to do with the production
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CA Pushpendra Gaur

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CA Pushpendra Gaur (Expert)
26 September 2011 there is no way compulsion to prepare Manufacturing A/c
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