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Carriage Outwards & Carriage Inwards in Trial Balance

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.

Account Type Ledger Balance
Asset Debit
Liability Credit
Equity/Capital Credit
Revenue Credit
Expense Debit
Drawings Debit

All expense line items such as carriage inwards and carriage outwards would present a debit balance in the trial balance.

 

Related Topic – How to prepare trial balance from ledger balances?

 

Treatment of Carriage Outwards and Carriage Inwards in Trial Balance

Trial balance showing a debit balance for both carriage inwards and carriage outwards

 

>Read Journal Entry for Carriage Inwards