JAMB Accounts Principles of Accounts 2013 Paper

Concept:Expenses shown in the profit and loss account include operating expenses and distribution costs such as carriage outwards.Explanation:Carriage outwards is an expense of selling goods, so it is debited to the profit and loss account.Carriage inwards forms part of the cost of purchases and is not charged directly as a profit and loss expense.The correct expense to record is:Expenses = $20,000$Carriage outwards = $6,000$Total expenses debited to profit and loss = $20,000 + 6,000 = 26,000$This is in naira #, so the amount is #26,000.Answer:C. #26,000