Construction

Labour-Only Subcontractor Cost

Recording the cost of a gang of workers supplied by a labour-only subcontractor (materials are provided by the main contractor).

Account NameTypeDebit ($)Credit ($)
Work-in-Progress (WIP — Labour Sub)Asset (+)22,000.00-
Accounts Payable (Labour Sub)Liability (+)-22,000.00

💡 Accountant's Note

Labour-only subcontractors are common in construction. Their costs are direct labor to WIP, separate from specialist subcontractors who also supply materials.

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