Question

Carriage outwards are shown in the _________.

• A. Trading account
• B. Profit and loss account
• C. Balance sheet
• D. None of the Above

Answer 1

The correct option is B Profit and loss account

Carriage is termed as loading and unloading charges for goods. There are two kinds of carriage i.e. carriage inward and carriage outwards.

Carriage inward is paid against the goods purchased and to be debited to trading account.

Carriage outward is paid against goods sold and treated as indirect expenses. This is shown in profit & loss account.