In a manufacturing account, royalties paid

Accounts - Principles of Accounts

WAEC 2018

A. debited to the trading account
B. credited to the profit and loss account
C. credited to the manufacturing account
D. debited to the manufacturing account

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Correct Answer: Option D

Explanation

Royalty paid on the basis of output (manufacturing) is debited to the Trading or Manufacturing Account as it is considered a normal business expenditure.

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In a manufacturing account, royalties paid

Correct Answer: Option D

Explanation

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