Sale of scrap of raw materials appearing in the trial balance are shown on the credit side of
-
trading account
-
manufacturing account
-
profit and loss account
-
real account
B
Correct answer
Explanation
Sale of scrap from raw materials is shown in the Manufacturing account because it's directly related to the production process. Scrap sales reduce the cost of production. This is different from normal sales (Trading account) or other income (Profit and Loss account). Manufacturing account specifically captures factory-related adjustments.