banner_ad

Interchange of direct and indirect cost

A/c entries 411 views 2 replies

Dear All

Is Direct and Indirect Cost Interchage acceptable ? 

Ex : 

Dr.    Transport Cost Others 

Cr.         Accrued Expenses 

(Being Dirvers Salary)

Afterwords cost transfer to 

Dr .  Driver Salary  

Cr.   Transport Cost Others 

Is it affect any law , because it is more than 10 Lakhs 

 

Regards

Mano

 

 

 

Replies (2)

What are you trying to say !

Hi Manoharan,

if this driver is on your company's payroll, then you have to put this as salary exp not transportation cost. Furhter how can it be possible that your accrued drivers salary is 10 lac. for a month. because you should put this on year end only. because I think all 11month exp are correctly known and paid.

 

and also clear here that this driver is for why and what runs?

and why are you transferring it to direct cost from indirect cost.

 

However it does not effect any law

 

 


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details
Company
Featured 19 March 2026
Article Assistant

Gupta Sachdeva & Co. Chartered Accountants

New Delhi

CA Final

View Details