Difference Between Returns Inwards And Returns Outwards

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.

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.