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Question
A suspense A/c C balance sheet D profit and loss A/c
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Solution
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Carriage Inward - It is the amount spent to bring the purchased material to the business location. Its an example of direct expenses, hence debited to Trading Account. Carriage Outward- It is an amount spent on the sales of goods. Its an indirect expense and to be debited to Profit & Loss Account. Carriage are of two types.
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Carriage on goods sold is shown in______________.
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Q
2
Journalise the following:
1. Purchased goods for ₹ 25,000 for Cash and paid ₹ 200 for carriage on these goods.
2. Purchased goods for ₹ 40,000 on Credit from Sudhir and paid ₹ 500 for carriage on these goods.
3. Purchased machinery for ₹ 20,000 and spent ₹ 500 on its carriage and ₹ 300 on its installation.
4. Purchased goods from Anil for ₹ 15,000.
5. Sold rd of the above goods at a profit of 20% on cost.
6. Goods costing ₹ 12,000 sold to Mr. X, issued invoice at 25% above cost less 10% trade discount.
7. Provide 20% depreciation on furniture costing ₹ 10,000.
8. Gave as charity − Cash ₹ 500 and Goods ₹ 2,000.
