Question

Observe the image and state the account where this expense will be shown.

विकल्प

• Trading Account debit side.

• Profit and Loss Account credit side.

• Trading Account credit side.

• Balance Sheet assets side.

Answer 1

Trading Account debit side.

Explanation:

Customs duty on imported goods is treated as a direct expense added to the cost of purchases (part of the cost of goods sold) and therefore appears on the debit side of the Trading Account.