Concept:Carriage inwards is an expense directly linked to the purchase of goods, so it forms part of the cost of purchases in the trading account.
Explanation:Carriage inwards is the transportation cost incurred to bring goods purchased into the business.
This cost is added to the value of purchases in the trading account.
It is not an expense on goods sold to customers; that would be carriage outwards.
Carriage outwards is a selling expense recorded in the profit and loss account, so option B does not explain carriage inwards.
Option D is not correct because carriage inwards is a valid expense of the trading period and appears in the trading account.
Thus, the reason for treating carriage inwards in the trading account is that it is an expense on goods purchased.
Answer:C. it is an expense on goods purchased