wages come in trading account why and wages and salary too
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wages are paid to workers who are directly engaged in the loading, unloading and production of goods and as such are debited to the credit trading account it should be noted that.
I) if the item wages and salaries is given in the question it will be shown on the trading account on the contract if the salary and wages is giving it will be shown on the profit and loss account.
2) if wages are paid for bringing a new machine or four it installment it will be added to the cost of the machine and hence will not be shown in the trading account.
it is shown in trading account because it is office expenses.
I) if the item wages and salaries is given in the question it will be shown on the trading account on the contract if the salary and wages is giving it will be shown on the profit and loss account.
2) if wages are paid for bringing a new machine or four it installment it will be added to the cost of the machine and hence will not be shown in the trading account.
it is shown in trading account because it is office expenses.
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