alleryCarriage inwards is debited to:
AProfit & Loss Account
BCapital account directly
CBalance Sheet directly
DTrading Account
Answer & Solution
Correct answer: D. Trading Account
1. Carriage inwards is a direct cost of bringing purchased goods to firm.
2. It is part of cost of goods sold.
3. Hence debited to Trading Account, not P&L.
_Source: ICAI BoS Foundation Paper 1, Ch 7 U1 "Final Accounts", §1.3 direct expenses_
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