passwella.
Menu

WAEC Financial Accounting 2026 Question 30

Question 30

Final Accounts of a Sole Trader

Items on the credit side of a profit and loss account include

  1. A.bad debts written-off
  2. B.loss on sale of assets.
  3. C.reduction in provision for doubtful debts
  4. D.increase in provision for doubtful debts
Show the answer and explanation

Answer: C (reduction in provision for doubtful debts)

Explanation

A reduction in the provision for doubtful debts is a gain, credited to profit and loss; the others are losses or expenses.