Accountancy, asked by vinod5659, 1 year ago

Carriage inwards included Rs 1000 paid for transport and octroi on new machinery purchased on 1-4-2006 what is its effects














Carriage inwards included Rs 1000 paid for transport and octroi new machinery purchased on 1-4-2006



Answers

Answered by bharatpatadia74
7

Answer:

Profit and Loss A/c, Trading A/c

Carriage outward is the seller's cost of delivering goods to the buyer. It is related to sale and carriage inward is the transportation cost associated with purchase of goods. Trading account includes all the expenses related to production. All the indirect expenses comes in profit and loss account. That's why carriage outward appears in profit and loss account and carriage inward appears in trading account. 

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