passwella.
Menu

WAEC Financial Accounting 1999 Question 3

Question 3

Final Accounts of a Sole Trader

Discounts received is

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

Answer: C (credited to the Profit and Loss Account)

Explanation

Discount received is income, so it is credited to profit and loss.