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WAEC Financial Accounting 2025 Question 2

Question 2

Final Accounts of a Sole Trader

The balance on the sales account is transferred to the trading account by

  1. A.debiting the sales account.
  2. B.crediting the sales account.
  3. C.debiting the customer's account.
  4. D.crediting the customer's account.
Show the answer and explanation

Answer: A (debiting the sales account.)

Explanation

Sales has a credit balance, so it is closed by debiting the sales account and crediting the trading account.