Question

Carriage outward is debited to-------Account

• A. Cash
• B. Profit and loss
• C. Balance sheet
• D. Purchases

Answer 1

Answer:

B. Profit and loss

Carriage outward (also called freight out) refers to the cost of delivering goods sold to customers. Since it is an expense related to selling, it is debited to the Profit and Loss Account.

·        Not Cash – cash is credited when payment is made.

·        Not Balance Sheet – it’s an expense, not an asset or liability.

·        Not Purchases – purchases concern goods bought for resale.