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WAEC Financial Accounting 2017 Question 18

Question 18

Final Accounts of a Sole Trader

The cost of transporting purchased goods to the warehouse is charged to the

  1. A.Profit and Loss Account.
  2. B.Appropriation Account.
  3. C.Trading Account.
  4. D.Income Surplus Account.
Show the answer and explanation

Answer: C (Trading Account.)

Explanation

Carriage inwards adds to the cost of purchases, so it goes to the trading account.