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WAEC Accounting 2021 Objective — Question 10

Question 10 of 50 from the West African Examinations Council (WAEC) Accounting 2021 Objective paper, with the correct answer and a full explanation.

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Net profit of a sole proprietor is transferred to the

  • A. profit and loss account
  • B. profit and loss appropriation account
  • C. capital accountCorrect
  • D. drawings account

Explanation

Net profit of a sole proprietor is credited to the capital account, as net profit adds to capital.

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