We often see the term carriage inwards and carriage outwards. As bookkeeper, we must clearly understand the difference and use the following appropriate accounting treatment.
| Carriage Inwards: |
- The transport costs of goods received by a company.
Accounting Treatment:
- Should be taken up in the Purchases figures as it is part of the cost of the goods being purchased.
|
| Carriage Outwards: |
- The transport costs of company’s goods to its customers.
Accounting Treatment:
- Should be taken up as expenses in the Income Statement.
|
This entry was posted on Thursday, October 18th, 2007 at 3:26 am and is filed under r. Trading & P&L Items.
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