Final answer:
In accounting, the cost of carriage on goods sold is treated as an expense. Hence, the correct transaction is Debit: Carriage, Credit: Cash, which reflects the expense incurred and the reduction in cash.
Step-by-step explanation:
The student is asking about the accounting treatment for the cost incurred on carriage of goods that have been sold. In accounting, when you pay for carriage on goods sold, you are incurring an expense directly related to the sale of those goods. Therefore, the correct transaction is to Debit: Carriage and Credit: Cash. This is because the carriage is an expense for the business and reduces the cash balance as the payment is made. The accounting entry would accurately reflect the outflow of cash and the expense incurred for carriage.