Packing charges regarding

purchase 100 rs
packing charge 10 rs
taxble amount 110
gst 18 percentage
invoice amount 110 + gst
now my question is what is the treatment packing charge in trading account
direct expenses or add in purchase amount
Replies (3)
Quick Summary
This discussion explores the accounting treatment of packing charges. While generally considered an indirect expense to be included in the Profit & Loss account, if packing charges are listed on the purchase invoice, they should be added to the cost of purchases.

Include it in purchase account

Packaging charge is indirect expense, which will be included in the Profits & Loss account as debit side entry.
But if shown in purchase invoice then added to cost of purchase

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