What is the difference between Direct expenses and Indirect
expenses?
Answer Posted / vinotha.v
DIRECT EXPENSES ARE LEVIED DURING THE PRODUCTION OF GOODS ,
example: POWER & FUEL, WAGES, OIL, ETC.,
INDIRECT EXPENSES ARE LEVIED AFTER THE PRODUCTION OF GOODS.
example: DEPRECIATION, INTEREST ON CAPITAL,PROVISION FOR
DEPRECIATION, ETC.,
Is This Answer Correct ? | 285 Yes | 52 No |
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Suppose My received Interest Income is 24934.59 And for the same time my Bank Charge total is 7785.19. Now the total Bank Charge will be deducted from Interest Income and the amount of (24934.59-7785.19)=17149.40 will be withdrawn to deposit in govt. Account.What will be the Journal Entry for 17149.40. Here, Already Bank Charge 7785.40 is Already Debited and 24934.59 is already credited in Journal.
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