WAEC Financial Accounting 2012 Question 11

Question 11

Final Accounts of a Sole Trader

Which of the following is a Trading Account item?

  1. A.Discounts allowed
  2. B.Discounts received
  3. C.Carriage outwards
  4. D.Carriage inwards
Show the answer and explanation

Answer: D (Carriage inwards)

Explanation

Carriage inwards is part of the cost of getting goods in, so it goes to the trading account. The others go to profit and loss.