In the Trading Account, which of the following is not debited? MCQ with Answer and Explanation

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In the Trading Account, which of the following is not debited?

A. Octroi duty on goods sold

B. Opening stock

C. Customs duty on imports

D. Freight inward

Answer: Option A

Solution (By JKSSB Mock Tests)

Octroi on goods sold is a selling expense, debited to P&L Account, not Trading Account. Octroi on purchases is direct expense.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Question #1

The 'Equalisation Levy' was expanded in 2020 to cover:

A. Physical goods

B. All digital transactions

C. All services

D. E-commerce supply of goods and services by non-resident e-commerce operators

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Correct Answer: Option D

Explanation:
Finance Act 2020 expanded scope to include e-commerce operators, even if they don't have a permanent establishment.

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Question #2

A firm's break-even point is 4,000 units. The variable cost per unit is ₹20, and the fixed cost is ₹40,000. What is the selling price per unit?

A. ₹25

B. ₹35

C. ₹30

D. ₹40

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Correct Answer: Option C

Explanation:
At BEP, Total Contribution = Fixed Costs. Contribution per unit = Fixed Cost / BEP units = 40,000 / 4,000 = ₹10. Selling Price = Variable Cost + Contribution = 20 + 10 = ₹30.

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Question #3

The 'Profit & Loss Account' begins with:

A. Opening stock

B. Capital

C. Net sales

D. Gross profit or gross loss brought down from Trading Account

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Correct Answer: Option D

Explanation:
Gross profit is transferred to the credit side of P&L Account; gross loss to debit side.

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