Question

Journal entry for transfer of direct expenses is __________.
Trading A/c Dr.
To Direct Expenses A/c

• A. True
• B. False

Answer 1

The correct option is A True

Direct expenses are the ones which is paid by firm due to its day-to-day working in tthe business. These expenses are recorded in trading account and are debited because the nominal account rules says debit all expenses and credit all incomes and trading account is itself a nominal account.

Thus, the given journal entry to transfer direct expenses is correct.