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Question
Carriage outwards are recorded the ______ side of the ______.
Options
Debit, trading account
Credit, trading account
Debit, profit and loss account
Credit, profit and loss account
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Solution
Carriage outwards are recorded the Debit side of the profit and loss account.
Explanation:
Selling and distribution expenses such as Carriage outward, salesmen's salaries and commissions, bad debts, etc., are debited to the profit and loss account.
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| 1) | Bank charges | ₹ 22,000 |
| 2) | Interest (Cr.) | ₹ 16,000 |
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| 4) | Insurance | ₹ 35,000 |
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