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Expenses whether purchase or under direct exp.

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Querist : Anonymous

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Querist : Anonymous (Querist)
02 August 2011 Dear All,

We are large manufacturer of "Rubber" and for that various small componant requier, now my Q is that, we are paying some "REPAIRS & MAINTENANCE" for some product which is use for rubber manufacturing now all these repairs bill shall we book under the head of purchse or we directly book under head of Diret exp. plz expain with brief solution
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CA PARAS BAFNA

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CA PARAS BAFNA (Expert)
02 August 2011 The expenditure of Normal Repairs & Maintenance is a kind of indirect expenses as it is not having direct relationship with the quantity produced or per unit cost. You can directly book these expenses in Indirect Expenses under the Ledger head of Repairs & Maintenance A/c.
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