Do you agree or disagree with the statement: Free distribution of goods is debited to Trading Account.
Q.1 (D) (i) Do you agree or disagree with the statement: Free distribution of goods is debited to Trading Account.
1 answer
Best answer
Answer: Disagree
Goods distributed as free samples are a selling (advertisement) expense. They are deducted from purchases on the debit side of the Trading Account (in effect credited to Trading Account) and debited to the Profit and Loss Account.
Doubtly AI
· 28 Oct 2026
AI-generated · not yet verified
Report
Was this answer helpful?
Thanks for the feedback.
Sign up free to save answers and ask your own doubts
Your answer
Log in or create a free account to answer this question.