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Freight charges is direct or indirect exp

Chetan jumani (ACCOUNTANT)     18 February 2016

Chetan jumani
 77 points

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Dear Sir, Freight Charges is Direct Or Indirect Exp For Automobile Showroom We Received Freight Invoice Against Purchased Tractors Please Guide its Urgent Thanks

Aditi Kaur (Practising CA)    18 February 2016

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SHINY (CA Final Student)     18 February 2016

CA Final Student 
 74 likes  699 points

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Its a Direct Expense since it relates to the business of Automobiles, thereby will be Reflected in the Trading A/c.

Ruchi (CA)     19 February 2016

 117 likes  1410 points

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Freight on purchase is direct expense and freight on sales is indirect.

shahyar husain

shahyar husain   02 January 2021

shahyar husain

 32 likes  1225 points

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When an item is being purchased then it is a direct expense while on the time selling, the freight is indirect expense. I hope this helps.
Indira Priyadarsini Kota

Indira Priyadarsini Kota (Student)     19 January 2021

Indira Priyadarsini Kota
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Freight inwards i.e; freight charges on purchases is a direct expense and frieght outwards i.e; freight paid on sales is an indirect expense as it is a recoverable expense and we collect the same from the customer.
Ayushi Arora

Ayushi Arora   15 February 2021

Ayushi Arora

 1 likes  278 points

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Freight charges are freight rate paid to is the amount paid to a carrier company for the transportation of goods from the point of origin to an agreed location.

The Freight charges are direct charges but Freight on purchase is direct expense and freight on sales is indirect

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