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Bifurcation of incurred expenses

This query is : Resolved 

31 July 2013 Dear Sir,

There is Construction company which deals with construction of buildings and sale of the same.The business entity purchased cement, bricks and steel from the supplier. so my question is under which head these purchased items are shown, under the head "Direct Expenses" or under the head "Purchases" in P&L A/C.


Pls rply me

31 July 2013 Purchase

31 July 2013 Purchase

31 July 2013 First of all Thanks for your rply sir.

So, purchase of cement, Bricks and Steel are shown under the head "Purchase" in P&L A/C.
Which type of expenses are come under "Direct expenses" Except Direct wages.

31 July 2013 Freight paid
Rental of machinery used for construction
etc


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