Question

The accountant of Gupta & Co. Ltd. has to pass an entry for Carriage Inwards. Where would he post the entry?

Options

• Debit side of Profit and Loss Account

• Debit side of Trading Account

• Credit side of Trading Account

• Liabilities side of Balance Sheet

Answer 1

Debit side of Trading Account

Explanation:

Carriage Inwards refers to transportation costs for bringing goods into the business. Since it’s a direct expense related to purchases, it is recorded on the debit side of the Trading Account.