Question

Factory expenses are shown in the __________Account
Trading
Profit & loss
Manufacturing
Balance sheet​

Answer 1

Answer:

Wages and other manufacturing expenses

are shown on the debit side of the trading account.

Answer 2

The correct answer is option (a) Trading Account.

Explanation:

• Factory expenses are shown in the Trading Account.
• Trading account is a statement which is prepared by a business firm.
• It shows the gross profit of business activities during a specific period.
• The expenses relating to wages and other manufacturing expenses like factory rent, factory lighting, motive power, gas, fuel, cleaning charges, etc. are shown on the debit side of the trading account.
• All the expenses related to goods sold, sales and other direct expenses are accounted in the trading account.