Carriage paid on sale of goods- Carriage Outward
Explanation:
The carriage paid on sale of goods is termed as carriage outward. When goods are sold, charges, such as transportation charges, are incurred for delivery of goods to the customer. This cost is known as carriage outward and is an indirect expense to the business, as it is incurred in connection with the sale of goods and not for producing or manufacturing goods. So, it is debited to the Profit & Loss A/c.