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WAEC Financial Accounting 2013 Question 46

Question 46

Final Accounts of a Sole Trader

At the end of trading period, cost of goods sold is debited to the trading account while cost of services is debited to the

  1. A.balance sheet.
  2. B.manufacturing account.
  3. C.trading account.
  4. D.profit and loss account.
Show the answer and explanation

Answer: D (profit and loss account.)

Explanation

Expenses for services such as rent, wages of office staff and electricity are charged to the profit and loss account.