Question

Carriage outwards appearing in the Trial balance are shown________________.

• A. on the debit side of Profit and Loss Account
• B. on the debit side of Trading Account
• C. on the liabilities side of the Balance Sheet
• D. on the credit side of P&L A/c

Answer 1

Answer: (A)

on the debit side of Profit and Loss Account

Carriage outwards is the seller's expense to transfer the goods to the customer. It is selling expense and therefore an indirect expense. Hence, carriage outwards appearing the trial balance will appear on the debit side of P & L A/c.