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WAEC Financial Accounting 2012 Question 45

Question 45

Manufacturing Accounts

Administrative, selling and distribution expenses in a manufacturing firm are recorded in

  1. A.Trading Account.
  2. B.Manufacturing Account.
  3. C.Profit and Loss Account.
  4. D.Balance Sheet.
Show the answer and explanation

Answer: C (Profit and Loss Account.)

Explanation

These are non-factory expenses, so they are charged to the Profit and Loss Account.