WAEC Accounting 2014 Paper

Concept:Expenses are divided between the trading account and the profit and loss account based on their nature.Explanation:The profit and loss account records indirect expenses and incomes, such as office expenses, salaries, and discounts allowed.Carriage inwards is a direct expense related to bringing purchased goods to the business.Therefore, carriage inwards is taken to the trading account, not the profit and loss account.All other options are indirect expenses and appear in the profit and loss account.Answer:The item not treated in the profit and loss account is carriage inwards.