English

Mr. Emmanuel paid wages to the workers. The entry of this transaction will be shown in Trading account.

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Question

Mr. Emmanuel paid wages to the workers. The entry of this transaction will be shown in Trading account.

Options

  • True

  • False

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Solution

True

Explanation:

Wages to factory workers are direct production costs and are shown on the debit side of the Trading Account to compute gross profit for the accounting period. An example of it is the posting of wages in the Trading Account.

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Chapter 7: Final Accounts of Sole Proprietorship - EXERCISES [Page 118]

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Goyal Brothers Prakashan Commercial Studies [English] Class 10 ICSE
Chapter 7 Final Accounts of Sole Proprietorship
EXERCISES | Q 31. | Page 118
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