Carriage on goods purchased is shown in:___________?
Correct answer: D. Trading A/c
- A. Profit and Loss A/c
- B. Capitalized with work in progress
- C. Shown in Balance SheetAccounting & Auditing
- D. Trading A/c
Explanation
Carriage on purchases is carriage inward, a direct expense incurred to bring goods to the business. It is therefore included in the Trading Account when calculating gross profit.
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Accounting principles explain the rules used to record, classify and report business transactions. Coverage includes the accounting equation, double-entry system, accrual and cash bases, matching and prudence concepts, consistency, going concern, business entity, and the difference between capital and revenue items.
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