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WAEC Financial Accounting 1993 Question 43

Question 43

Final Accounts of a Sole Trader

Carriage inwards are

  1. A.credited to the Trading Account.
  2. B.debited to the Trading Account
  3. C.credited to the Profit and Loss Account
  4. D.debited to the Profit and Loss Account
  5. E.debited to the Profit and Loss Appropriation Account.
Show the answer and explanation

Answer: B (debited to the Trading Account)

Explanation

Carriage inwards adds to the cost of purchases, so it is debited in the trading account.