Carriage inwards are

Assessment: WAEC SSCE - Financial Accounting - 1993 (Objective) Subject: Financial Accounting

Question 1 Report

Carriage inwards are
Answer Details
Carriage inwards refers to the transportation cost incurred in bringing goods purchased into the company's premises. When accounting for these costs, they are typically treated as an expense and are therefore debited to the trading account. This means that they reduce the gross profit and ultimately affect the net profit of the company. Therefore, "debited to the trading account" is the correct answer.
Read lesson note on Nature And Significance Of Accounting (JAMB)
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