JAMB Accounting 2021 Objective — Question 28
Question 28 of 40 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2021 Objective paper, with the correct answer and a full explanation.
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28. The sole trader does not prepare a. Profit and loss account b. Trading account c. Appropriation account d. Balance sheet
- A. Profit and loss account
- B. Trading account
- C. Appropriation accountCorrect
- D. Balance sheet
Explanation
The major difference between a sole trader's accounts and those of other business forms is the appropriation account. A sole trader takes all the profit directly, so no appropriation account is needed.
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