This refers to the total amount realized from the sales of goods within the period. Note that if there is any return inwards, it will be deducted from the sales. Note also that Trading Account can be presented in the form of vertical, or “T” form.
Here, returns inwards are those returns made whenever goods purchased were later returned to the seller of the product(s).
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 …
These are those expenditure that are incurred whenever goods purchased are conveyed from the seller’s warehouse to the purchaser’s warehouse; that is the cost involved in transporting goods.
The carriages are of two different types and they are thus: (I) Carriage Inwards and (II) Carriage Outwards.
These are the additional goods bought into the business and which then would be added to the opening stocks in order to know the exact quantity of goods that are available for sales, though the carriage inwards would be deducted if there, is any.