Construction Company accounting

Jabir Aslam (1 Points)

26 July 2022  

I am an accountant in a construction company, using Tally Prime for accounts management. As a part of our business. We use natural soil for ground leveling in our construction projects. We are purchasing soil from some suppliers. But we are not treating it as a purchase. We used to treat this as an expense that occurred for that particular project. This expense is unclear to me whether it is a direct or indirect expense. It is actually occurring while manufacturing a Building and it is necessary. 

 

It would be helpful if someone can help me to clear this doubt.