Question

On debit side of trading Account we record ______ *
Direct expenses
Indirect expenses
Both​

Answer 1

Ans is. Direct. expenses.

Answer 2

On debit side of trading Account we record ______

Direct expenses

Indirect expenses

Both​

The correct answer is :

Direct expenses

Explanation :

On debit side of trading account we record direct expense.

Direct expenses in any business are recorded in the Trading account. Direct expenses are those expenses which are directly related to production and business activities. The details of these are recorded in the business account to find the gross profit in direct expenses. Those which are indirect, but related to the business, are recorded in the profit and loss account.

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