Raman,
You should certainly see the G/L Account on the financial statements. If you don't see the amount, it may be because your offset account and the expense account are within the same group on your financial statement structure and are netting themselves out. Alternately, for customer projects, these amounts will not appear in the expense accounts until you've actually performed Revenue Recognition (until that point, they'll be in Deferred COGS)
As far as journal entries, i would break it down by cost center (breakdown by project is unnecessary - the result of the time entry financial posting process explained in this thread is the reason that this is unnecessary). You should see Customer Project-related expenses hitting an expense account. Double-check that you've run Revenue Recognition and also see where the accounts are placed within your financial reporting structure.