Question { FIC, 197915 }

What is the difference between Direct expenses and Indirect
expenses?

Answer

the expenses which are related to the factory is known as
direct expense
e.g. wages to workers, factory rent, machine servicing
charges

the expenses which are related to the office is known as
indirect expense
e.g. salary to staff, rent, electricity etc

Question { 10421 }

What are the basic rules in accounting.

Answer

Real a/c : 1-Debit what comes in
2-Credit what goes out

Personal a/c : 1-Debit the receiver
2-Credit the giver

Nominal a/c : 1-Debit all losses and expenses
2-Credit all incomes and gains