Q.Name any two direct expenses and indirect expenses

Direct expenses (e.g. wages, carriage inwards) enter the Trading Account; indirect expenses (e.g. salaries, office rent) enter the Profit and Loss Account.

Direct expenses are those incurred on purchasing goods and bringing them to the godown in a saleable state. They are debited to the Trading Account.

• Examples: Wages, Carriage inwards (also freight inwards, power and fuel, factory rent, import duty). …