where will carriage and cartage goes in financial statement i.e. trading & profit & loss A/c or in balance sheet ?
Dear Student,
Carriage Inward will be shown on the debit side of Trading Account and Carriage Outward on the debit side of P&L Account. However, if only Carriage is provided in the question without specifying whether it is Inward or Outward, it is considered as Carriage Inward and shown on the debit side of Trading Account.
Cartage is a direct expense, thus, it will be shown on the debit side of Trading Account.
Hope this answers your query.
Keep Posting!!!
Carriage Inward will be shown on the debit side of Trading Account and Carriage Outward on the debit side of P&L Account. However, if only Carriage is provided in the question without specifying whether it is Inward or Outward, it is considered as Carriage Inward and shown on the debit side of Trading Account.
Cartage is a direct expense, thus, it will be shown on the debit side of Trading Account.
Hope this answers your query.
Keep Posting!!!