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Freight charges is direct or indirect exp

Chetan jumani (ACCOUNTANT) (77 Points)

18 February 2016

Dear Sir, Freight Charges is Direct Or Indirect Exp For Automobile Showroom We Received Freight Invoice Against Purchased Tractors Please Guide its Urgent Thanks

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9 Replies

SHINY (CA Final Student) (699 Points)
Replied 18 February 2016

Its a Direct Expense since it relates to the business of Automobiles, thereby will be Reflected in the Trading A/c.

Ruchi (CA) (1410 Points)
Replied 19 February 2016

Freight on purchase is direct expense and freight on sales is indirect.

shahyar husain (1235 Points)
Replied 02 January 2021

When an item is being purchased then it is a direct expense while on the time selling, the freight is indirect expense. I hope this helps.

Indira Priyadarsini Kota (Practice) (590 Points)
Replied 19 January 2021

Freight inwards i.e; freight charges on purchases is a direct expense and frieght outwards i.e; freight paid on sales is an indirect expense as it is a recoverable expense and we collect the same from the customer.

Ayushi Arora (298 Points)
Replied 15 February 2021

Freight charges are freight rate paid to is the amount paid to a carrier company for the transportation of goods from the point of origin to an agreed location.

The Freight charges are direct charges but Freight on purchase is direct expense and freight on sales is indirect