In the Chapter Financial Statements-I, Topic 4, Profit and Loss Account example 1, why have you not recorded - Accountancy - Financial Statements - I

Question

In the Chapter Financial Statements-I, Topic 4, Profit and Loss
Account example 1, why have you not recorded Wages and Salaries Rs
4530?

Nikhil Sehgal · Accepted Answer

Profit and Loss Account is a nominal account that records all the
indirect expenses and indirect incomes so as to arrive at the Net
Profit for the business It records all those expenses that are not
directly related to production or manufacturing activities of the
business Wages and Salaries is considered to be a direct expense (i
e related to amount paid to the workers/employees working in
factory or production place) and accordingly is to be debited to
Trading Account However, if it would have been Salaries and Wages
then it must have been debited to Profit and Loss Account as the
term salaries coming in front shows that majority of the amount
paid includes payment of official remuneration to employees in
non-productive activities

In the Chapter Financial Statements-I, Topic 4, Profit and Loss Account...example 1, why have you not recorded Wages and Salaries Rs. 4530?