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WAEC Financial Accounting 1994 Question 2

Question 2

Final Accounts of a Sole Trader

Carriage outwards is charged to the

  1. A.debit side of Profit and Loss Account
  2. B.credit side of Profit and Loss Account
  3. C.credit side of Trading Account
  4. D.debit side of Profit and Loss Appropriation Account
  5. E.debit side of Balance under current liabilities.
Show the answer and explanation

Answer: A (debit side of Profit and Loss Account)

Explanation

Carriage outwards is a selling expense, debited to profit and loss.