Construction Accounts

Cement and steel under Direct expenses  and others like conveyance, staffwelfare etc have to be taken under indirect exp. 
 

As per AS10 all cost which are attributable to construct property, plant and equipment can be capitalise. so expenditure which are relates to fixed asset debited to Capital work-in-progress A/c.

 Direct Expenses:  Direct expenses are those expenses that are paid only for the business part of your home.  For example, if you pay for painting or repairs only in the area used for business, this would be a direct expense. 

* Indirect Expenses:  Indirect Expenses are those expenses that are paid for keeping up and running your entire home.  Examples of indirect expenses generally include insurance, utilities, and general home repairs.  Since these are expenses you would pay for the entire home, these are considered indirect expenses. 

Dear Sir,

             Cement and Steel will Come Under Construction Material (Direct Expenses), and Conveyance and Staff Welfare will come Under Indirect Expenses, in Construction Industry Labour Welfare, Labour Wages Come under other Direct Expenses (Under Direct Expenses)