Day: September 6, 2024

The trial balance of Alex plc, a manufacturer, as at the year-end 30 April 2024 included the following items:

Carriage inwards
Depreciation of delivery vehicles

In the income statement, in respect of depreciation of delivery vehicles and carriage inwards where should each of them be included in which of the 3 headings of the Income Statement?

A Cost of Sales
B Administrative expenses
C Distribution costs

Select ONE answer:

1. A, A
2. A, B
3. B, C
4. A, C

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct

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