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(Querist)
26 June 2020 SIR
Direct expenses should be accounted under the group of Revenue Accounts? If it is yes, why it should be accounted like that?
pls give me explanation.

thanks in advance
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Gokul Sharma

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Gokul Sharma (Expert)
26 June 2020 direct exp are the expenses related to trading account.
like carriage inward.....wages....other manufacturing charges.

how can be expenses is revenue.
revenue is basically sales and service rendered.
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CA Akshay Jangid

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CA Akshay Jangid (Expert)
29 June 2020 Revenue Expenditure are those which are related to specific revenue transactions, such as Cost of Goods Sold or Repairs and Maintenance expense etc.
This is why Direct expenses are categorized as Revenue Expenditure.
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