Carriage on sales - is carriage inwards or carriage outwards . Also where does it come in the cost sheet ?
Answers
Carriage inwards is the shipping and handling costs incurred by a company that is receiving goods from suppliers. ... Thus, depending on the accounting treatment, it may first appear in the balance sheet as an asset, and then shift to the cost of goods sold in the income statement as goods are sold.
The answer is shown below:
Explanation:
The carriage on sales is carriage outwards as the carriage deals outwardly with the cost of shipping and storage borne by the company when delivering the goods to a customer. It is shown in the income statement in the cost of the goods sold section. This also be presented in the balance sheet asset side.
While carriage inward is a shipping and handling cost incurred by the company thus receiving the goods from the supplier when the sale is made in the same period. It is reflected in the income statement in the cost of the goods sold section. This would be shown in the balance sheet asset side and the expense of the goods sold in the statement of revenues.
Learn more
What is cost sheet ?
https://brainly.in/question/3090595