WAEC - Accounts Principles Of Accounts (2018 - No. 28)

In a manufacturing account, royalties paid

debited to the trading account

credited to the profit and loss account

credited to the manufacturing account

debited to the manufacturing account

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.

WAEC - Accounts Principles Of Accounts (2018 - No. 28)

Explanation

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