salary of employees ( engage in marketing and promotional activities) is recorded in which account salary account or in sales promotional expenses a/c ?
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Quick Summary
This discussion explores the correct accounting treatment for employee salaries involved in marketing and promotional activities. While some argue salaries should always be in a 'Salary Account', others suggest it depends on accounting standards, with some placing it under 'Admin and Distribution' or even directly in 'Sales Promotional Expenses'. The consensus leans towards 'Salary Account' as the correct nomenclature, with references made to company acts and schedules for clarity on classifying wages and their impact on inventory.
According to.Indas its admin and distribution line item. As per as, the heck they follow trading and profit ac. So the cheap MBA text books doesnt mention salary account anywhere and as operating expense while some salaries are. As per indas, all wages fall under admin expenses after gross profit. Search companyy acts schedule 3. Itll make things easier.