Items included in the debit side of the trading account

Followings are the items which are include in the debit side of the trading account

1. Opening Stock:

Opening stock consists of raw materials , work in progress and finished goods depending upon the nature of business. In merchandising business , the opening stock consists of finished goods. In manufacturing concern , opening stock consists of raw materials.

2. Purchase

Purchase includes both credit purchase and cash purchase. Purchase is available in trial balance.

3. Purchase Returns

Purchase returns is appear in the credit side of trial balance. Purchase returns may be shown by deduction from purchases.

4. Direct Expenses

Direct expenses means all the expenses which are directly attributable to the purchase of goods. These are the some examples of direct expenses.

a. Direct labour or direct wages.

b. Freight on purchase.

c. Carriage on purchase.

d. Fuel , power and lighting expenses.

e. Packing charges.

f. Manufacturing expenses.

g. Commission on purchase.

h. Royalty