Hi sir/Madam
For a house keeping services proprietor firm
Could you please clarify below of my queries
1. Is salary a direct expense or indirect expense
2.classification of Employee pf contribution and Employer PF Contribution (Expense and Liability)
Thanks for your help
Wages are direct and salaries are indirect cause they are not related to production or revenue generators.
the format is like this
By Basic salary
By allowances
By EPF/EPS/ESIC a/c
By Admin charges towards EPF
===========================================================
To EPF/EPS/ESIC payable
To Professional tax payable
To TDS payable
To Labor welfare fund payable
To Salaries payable
To Admin charges payable
To allowances payable
CAclubindia
