Travelling Expenses Comes Under Which Account

Travelling Expenses Is Which Type / Kind Of Account (Travelling Expenses Accounting Treatment) / Are These Direct Or Indirect Expenses? / Are These Debited To Profit And Loss Account?

Travelling Expense is a Nominal Account as it is an Expense recorded in Income Statement or Profit and Loss Account. It is a Temporary Account.

Travelling expense is neither a personal account nor a real account as it is not related with assets, liabilities and personal accounts to treat it as a personal or a real account.

For example, travelling expenses of Rs. 20000 paid to sales manager for visiting a place to promote the business products is an example of a nominal account.

Travelling expenses are closed at the end of the accounting period to Income Summary Account and not transferred to Balance Sheet / Statement Of Financial Position as these are not Permanent Accounts.

Travelling Expenses In Trial Balance Debit Or Credit

The normal or usual balance of these kinds of expenses is debit when it increases, we debit it and when it decreases or when we close it we credit it. So, travelling expenses are indirect expenses if these are incurred not directly related with the cost of production and shown on the debit side of Trial Balance.