When accounting for the daily diesel consumption of a DG set used for electricity in a remote project, the expense should be booked under 'Direct Expenses'. This reflects the cost directly associated with the project's operations.
01 July 2025
A project is going on in remote area where DG set is there to supply electricity and generator also. There is a daily consumption of diesel for Rs.10,000/- per day. In books of accounts under which head the expense of diesel will be booked?