If only wages is shown on the trial balance, it should be charged to the
The correct answer is A. profit and loss account
Wages should be charged in the trading account only if shown separately on the trial balance from salaries. In such circumstances, the assumption, unless you are otherwise told, is that the wage is a direct trading expense to be included in the trading account while salary is an Indirect (i.e overhead) expense to be included in the P & L account.
Previous question Next questionWhat is Exam without Practice? With our customizable CBT practice tests, you’ll be well-prepared and ready to excel in your examsStart Practicing Now