Purchase of Packing materials!!!...Urgent Sir!!

This query is : Resolved

Rajesh (Querist)
Follow

01 September 2010 Dear Experts,
In a private limited company, they are purchasing packing materials which are used for delivering the goods when it is sold.
1)In such a case can those packing materials purchased be classified as Purchases and classified as Direct Expenses in the Tally?
2)Can i classify them as Selling & Distribution Expenses?
Thanks for the reply...
With regards,
Rajesh.

Aditya Maheshwari

Aditya Maheshwari (Expert)
Follow

01 September 2010 Direct expenses as it is in relation to sale and also not purchase as the company is not trading in packing material.

However at the year end do show the stock of materials as closing stock.

Message likes : 1 times

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
Follow

01 September 2010 If the packing material is of nature that can not be isolated from the final output, then it can be included in purchased.

e.g main wrapper of soap, main can of tooth powder etc.

But if you are talking of packing materials like cartons etc for bulk sending, then it may be added to the selling & distribution cost.

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

divakar podaturu

SHRI HARIRAO

Dalbir Singh Wadhera

Rajesh Surapaneni

Sandeep Ranjan

Subscribe Now

Purchase of Packing materials!!!...Urgent Sir!!

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

CA Final

Manager- Finance and Compliance

GST CONSULTANCY

Accountant

Article Assistant

GST CONSULTANT