WAEC Financial Accounting 1998 Question 5

Question 5

Final Accounts of a Sole Trader

Carriage Inwards are incurred on goods

  1. A.on display
  2. B.sold
  3. C.in process
  4. D.purchased
  5. E.on return.
Show the answer and explanation

Answer: D (purchased)

Explanation

Carriage inwards is the cost of bringing purchased goods into the business.