These are expenditure incurred when transporting goods from the producer’s warehouse to the market sales. When the owner of a business wants to transport goods to the market where they are to be sold. From these explanations above, we can see that both of them – carriage inwards and carriage outwards are expenditure, which the owner of the business incurred. But the difference here is that the carriage outwards will appear in trading account of business while that of carriage outwards will appear in profit and loss account.