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The charges of placing commodities into a saleable condition should be charged to: I Trading account II P & L A/C III. Balance Sheet
Question

The charges of placing commodities into a saleable condition should be charged to:
I Trading account
II P & L A/C
III. Balance Sheet

A.

Only I

B.

Only II

C.

Only III

D.

I, II and III

Correct option is A


The expenses incurred to make commodities saleable are recorded in the Trading Account as they are directly related to the cost of goods sold.

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