Where does carriage outwards go in the balance sheet?

Carriage outwards, which refers to the cost of transporting goods to customers, is recorded as an expense on the income statement rather than on the balance sheet. However, its impact can indirectly affect the balance sheet by reducing the net income, which in turn affects retained earnings under the equity section. Thus, while it doesn't appear directly on the balance sheet, it influences the overall financial position of the company.