Difference Between Returns Inwards And Returns Outwards

August 11th, 2006 /
Carriage Inwards:
  • The transport costs of goods received by a company.

Accounting Treatment:

  • Should be taken up in the Purchases figures as it is part of the cost of the goods being purchased.
Carriage Outwards:
  • The transport costs of company’s goods to its customers.

Accounting Treatment:

  • Should be taken up as expenses in the Income Statement.

Comments RSS

  1. hope

    very helpful material.I was struggling with these notions and it appears that this site is God sent.thanks

  2. King-David Amoah

    There should be more information about why some goods are returned (returns inwards).

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