Hi
I know this is very basic doubt but i am confused about it
Food expenses incurred for supplying food to consultant visiting for Repair and Maintanance of Machinery
Now where should this expense be booked?
1. Repairs and Maintanance
2. Entertainment expenses
I was of opinion that it should have been booked to entertainment expenses.. but now i feel option 1 is right as the expense was incurred with relation to repairs, so the expense is part of repairs expense incurred(same logic as carriage inward eventhough is transportation cost is taken as material cost as it is related to making the material available for production)