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Employee cost in statement of p&l
Accountancy
Does employee cost in statement of p&l includes direct labour wages also??
Answers (10)
CA Suraj Lakhotia Admin
This is the format for SCH III IV. Expenses: Cost of materials consumed Purchases of Stock-in-Trade Changes in inventories of finished goods, work-in-progress and Stock-in-Trade
Sir i am asking whether the employees cost in schedule 3 statement of profit & loss include direct labour wages??
CA Suraj Lakhotia Admin
Yes.
But sir direct wages are included in cost of conversion of inventory (manufactured goods)
CA Suraj Lakhotia Admin
Schedule III does not have cost of conversion as a line item
Ok so all. The conversion cost is debited/record in schedule 3 seperately in p&l statement