CLASSIFICATION OF DIRECT & INDIRECT EXPENSESAND ASSETS & LIABILITIES A.

DIRECT EXPENSES

1) Freight Inwards 2) Carriage Inwards 3) Fuel 4) Motive Power 5) Octroi 6) Import Duty 7) Dock Charges 8) Oil And Gas

B. INDIRECT EXPENSES OR OVERHEADS

I. Office & Administration Expenses:

1) Salaries to employees 2) Printing and stationary 3) Office rent 4) Postage and telegram expenses 5) Lighting expenses 6) Trade expenses 7) Audit fees 8) Directors fees

9) Operating expense of office 10) Insurance and taxes 11) Stable expense 12) Repairs 13) Shop rent 14) Law charges 15) Subscription to trade committees 16) Telephone expenses 17) Ordinary expenses 18) Depreciation on Office building

II.

Factory Expenses:

1) Factory Rent 2) Factory Insurance 3) Factory Expenses 4) Depreciation on factory plant &machinery

III.

Selling & Distribution Expenses:

1) Carriage outward 2) Advertisement expenses 3) Export duty 4) Commission to sales agent 5) Salaries to sales agent 6) Insurance of goods sold

7) Packing expenses 8) Remuneration to agent 9) Depreciation on delivery vans 10) Bad debts

IV.

Financial Expenses:

1) Interest on loan 2) Discount allowed 3) Rebate allowed 4) Interest on capital 5) Discount on bills discounted 6) Bank expenses 7) Charity

C. INDIRECT INCOMES:
1) Commission received 2) Discount received 3) Interest received on investment 4) Interest received on bank deposits 5) Interest on drawings 6) Rent received 7) Bad debts recovered or any amount earlier written off 8) Profit on joint venture 9) Rebate received 10) Discount received

11) Bonus from suppliers 12) Profit on sale of asset 13) Profit on sale of investment

D. ASSETS: 1. Intangible Assets

1) Goodwill 2) Patent 3) Trade mark 4) Copyrights 5) Designs 6) Royality

2.

Fixed Assets

1) Land & building 2) Leasehold 3) Plant and machinery 4) Furniture and fittings 5) Vehicle 6) Live stock 7) Loose tools 8) Stores and spare parts 9) Investments

3.

Current Assets

1) Cash in hand 2) Cash at bank 3) Short-term Investments 4) Accounts Receivable a) Debtors b) Bills receivables 5) Prepaid expenses 6) Accrued income 7) Stock 8) Marketable securities

4.

Fictitious Assets

1) Under writing commission 2) Brokerage 3) Discount On issue of share or debenture 4) Interest paid out of capital 5) Preliminary expenses

E. LIABILITIES: 1. Fixed Liabilities (or) Long-term Liabilities

1) Capital

2) Long term loans 3) Reserves and surplus 4) Debentures

2.

Current Liabilities

1) Short term loan 2) Bank over draft 3) Accounts Payable a) Bills payable b) Creditors 4) Expenses outstanding 5) Prepaid Incomes