passwella.
Menu

WAEC Financial Accounting 2012 Question 49

Question 49

Final Accounts of a Sole Trader

Which of the following is not an item in the profit and loss account?

  1. A.Drawings
  2. B.Interest
  3. C.Salaries
  4. D.Bad debts
Show the answer and explanation

Answer: A (Drawings)

Explanation

Drawings are taken by the owner for personal use; they reduce capital in the balance sheet and are not a business expense.