Carriage outwards appearing in Trial Balance should be shown in
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at least one is the meaning
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• ) Profit and loss account.
Carriage Outwards appearing in Trial balance should be shown in Profit and loss account
And in case, Carriage inwards appearing in Trial balance should be shown in Trading account.
Trading Account records only direct expenses. Direct expenses are :
Direct Expenses
Direct expenses are the amount spend directly on the purchase of goods. Eg : Carriage, Octroi,Clearing charges,Power, gas , water , Carriage inwards.
The format of Profit and loss account is attached.Go through it. Hope it's understandable..
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