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UI Post-UTME Financial Accounting 2025 (Model questions) Question 18

Question 18

Final Accounts of a Sole Trader

From the following, identify items that appear in the trading account:
I. Carriage outwards
II. Carriage inwards
III. Returns inward
IV. Wages of production workers

  1. A.I and II only
  2. B.II, III and IV only
  3. C.I, II and III only
  4. D.All of the above
Show the answer and explanation

Answer: B (II, III and IV only)

Explanation

Carriage inwards, returns inwards and production wages go in the trading account; carriage outwards is a selling expense in the profit and loss account.