To determine the correct answer regarding the carriage outwards, we first need to clarify what carriage outwards means in the context of financial accounting. Carriage outwards refers to the transportation costs incurred by a business to deliver goods to customers. This cost is typically considered an expense and is recorded in the income statement. Given Data:

• Stock (Inventory) on January 1: ₦2,000
• Purchases: ₦4,000
• Carriage Inwards: ₦500 (This is the cost of transporting goods into the business and is added to the cost of inventory)
• Sales: ₦9,000
• Carriage Outwards: ₦500 (This is the cost of transporting goods out to customers)

Analyzing the Options: The question asks for the amount of carriage outwards, which is already provided in the data as ₦500. However, the options provided are: A. ₦9,000 B. ₦2,500 C. ₦3,000 D. ₦1,500 Correct Answer: The correct answer is not listed among the options provided. The recorded carriage outwards is ₦500, which is the amount we have from the data. However, since the question seems to imply that we need to select from the options, we will analyze the options to understand why they are incorrect. Explanation of Why the Answer is Correct:

1. Understanding Carriage Outwards: Carriage outwards is a direct expense related to the delivery of goods sold. It does not affect the cost of goods sold (COGS) directly but is an operational expense that reduces the net income.
2. Data Interpretation: The data provided clearly states that the carriage outwards is ₦500. This is a straightforward reading of the information given.

Why Other Options are Incorrect:

• Option A: ₦9,000: This figure represents the total sales amount, not the carriage outwards. It is unrelated to the transportation costs incurred by the business.
• Option B: ₦2,500: This amount does not correspond to any of the figures provided in the data. It is not derived from any calculation related to the carriage outwards or any other expense.
• Option C: ₦3,000: Similar to option B, this figure does not relate to any of the costs or expenses mentioned in the data. It is arbitrary and does not reflect any calculation.
• Option D: ₦1,500: Again, this amount does not correspond to any of the figures provided. It does not represent the carriage outwards or any other relevant expense.

Common Pitfalls:

• Misunderstanding Carriage Costs: Students often confuse carriage inwards and carriage outwards. Remember that carriage inwards is added to inventory costs, while carriage outwards is an expense.
• Ignoring Given Data: Always refer back to the data provided in the question. In this case, the carriage outwards was explicitly stated as ₦500.

Revision Summary:

• Carriage outwards is the cost incurred to deliver goods to customers and is recorded as an expense.
• The correct amount for carriage outwards from the data provided is ₦500.
• Always differentiate between carriage inwards (added to inventory) and carriage outwards (operational expense).
• Carefully analyze the options provided and refer back to the data to avoid confusion.

In conclusion, the correct amount for carriage outwards is ₦500, which is not listed among the options provided. The options given do not accurately reflect the data, and it is essential to focus on the information presented in the question.