Select the most appropriate alternative from those given below: Carriage inward is debited to Account.

Carriage inward is a transportation expense paid by the purchaser. It is a direct expense considered a manufacturing expense and include in the cost of goods sold.

Option A - Correct. A trading account is an account that shows all the direct expenses and is prepared to calculate the gross profit or gross loss. Carriage inward is an expense and debited to trading a/c.

Option B - Incorrect. The profit and loss account is prepared to calculate the net profit or loss earned by the firm during a particular year. It considers all the indirect incomes and expenses.

Option C - Incorrect. Capital Account shows the amount that is invested by the proprietor in the business firm.

Option D - Incorrect. Drawings are the amount that the proprietor withdrew from the firm for personal use.

Hence, option A is the correct answer.