Treatment of Carriage Outwards and Carriage Inwards in Trial Balance
The trial balance is a statement of Dr. & Cr. balances which are extracted from ledger accounts after balancing them. It is prepared to prove that the total of accounts with a debit balance is equal to the total of accounts with a credit balance in the company. Carriage inwards in trial balance and Carriage outwards in trial balance are both treated as just another expense.
Here is a list of all major type of accounts in a business and their usual ledger balances.
Related Topic – How to prepare trial balance from ledger balances?