Oct
18

Carriage Inwards Versus Carriage Outwards

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.
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