Carriage inwards is shown on the: MCQ with Answer and Explanation

Carriage inwards is shown on the:
A. Debit side of Trading Account
B. Asset side of Balance Sheet
C. Credit side of P&L Account
D. Debit side of P&L Account
Answer: Option A
Solution (By JKSSB Mock Tests)
Carriage inwards is the transportation cost of bringing raw materials/purchases to the factory, hence it's a direct expense charged to the Trading Account.

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Practice More Accountancy and Book Keeping Questions

Question #1
The 'Interim Financial Reporting' (Ind AS 34) suggests that the same accounting policies should be applied as in annual statements. This is an application of:
A. Going concern
B. Materiality
C. Consistency
D. Accrual

Correct Answer: Option C


Explanation:
Applying same policies ensures consistency.

Question #2
The 'Country-by-Country Report' (CbCR) filing in India is required for MNE groups with consolidated revenue exceeding:
A. ₹500 crore
B. ₹1,000 crore
C. No threshold
D. ₹5,500 crore (€750 million)

Correct Answer: Option D


Explanation:
The threshold is aligned with BEPS Action 13, i.e., €750 million.

Question #3
If the total of debit side of trial balance is ₹1,50,000 and credit side is ₹1,45,000, the suspense account will be:
A. Debit ₹5,000
B. Credit ₹5,000
C. Credit ₹1,50,000
D. Debit ₹1,45,000

Correct Answer: Option B


Explanation:
Credit side is short by ₹5,000, so suspense account is credited to balance.