Q.State whether each of the following Trial Balance items would appear in the Trading Account, the Profit and Loss Account, or the Balance Sheet:

Apply the sorting rule: buying/selling-related items go to Trading A/c, other operating items go to P&L A/c, and what the business owns/owes goes to the Balance Sheet.

Apply the same sorting rule to each item.

1. Carriage Inward — Trading Account, since it is a direct expense connected with bringing purchased goods into the business.
2. Discount Received — Profit and Loss Account, since it is an indirect income, not connected with the physical buying/selling of goods.
3. Sundry Debtors — Balance Sheet, since it is a current asset (amount owed TO the business by customers).
4. Wages — Trading Account, since factory/godown wages are a direct expense of readying goods for sale.
5. Rent Paid — Profit and Loss Account, since it is an indirect (operating) expense.
6. Furniture — Balance Sheet, since it is a fixed asset owned by the business.
   ✓Final answer

   (i) Trading Account (ii) Profit and Loss Account (iii) Balance Sheet (iv) Trading Account (v) Profit and Loss Account (vi) Balance Sheet.