alleryWages and salaries ₹40,000 paid; the heading combines factory and office portion. Convention:
AAll debited to Trading
BAll debited to P&L only
CDebited to Trading A/c
DSplit in ratio asked
Answer & Solution
Correct answer: C. Debited to Trading A/c
1. Convention: when wages and salaries appear together, the item begins with 'wages', signifying factory cost.
2. Hence debited to Trading Account.
3. If shown as 'salaries and wages', debited to P&L instead.
_Source: ICAI BoS Foundation Paper 1, Ch 7 U1 "Final Accounts", §1.4 special items_
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