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Will Opening Stock Apper in Trial balance on Specific Date

ANIL KUMAR (Practicing Chartered Accountant ) (32 Points)

29 August 2009

If Anybody ask you Strieght Question as

"Will Opening Stock Value Appear in Trial Balance prepared on Any Specific Date?

means e.g : Trail Balance prepaired on 31.03.2009 with all Ledgers Closing Balances in that

will you consider Value of Opening Stock or Value of Closing Stock.

What is Perfect Answer as you are Accounting Expert or CA ?

From

Anil Kumar

ponnalaanil @ gmail.com

Thanks with regards....

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8 Replies

(Guest)

Definitely Closing stock for the previous year end will appear as an opening stock in the trial balance preapred on 31.3.09 because opening stock.i.e closing stock of previous year represents the amount of expense incurred durin the previous year the benefit of which will be realised in the current year..so current period i.e.31.3.09 tb will contain the value of opening stock as on 1.4.08 and closing stock of 31.3.09 will be shown as an adjustment in the final accounts and will appear as opening stock for the next financial year

Sanjive Kumar Singh (CHARTERED ACCOUNTANT) (79 Points)
Replied 31 August 2009

Trial balance is a list of closing balances both revenue and capital in nature as on a particular date. Therefore logically trial balance should not contain opening stock in it. In that case 'consumption' has to appear in the trial balance. Now in case opening stock needs to be shown in trial balance then 'consumption' will be replaced by 'purchase' during the period.

Hope this is clear.

1 Like

Amit Jain (Proprietor) (290 Points)
Replied 06 September 2009

Opening Stock will always appear in the Trial balance.

CA DEEPAK RAMAN (CA FInal) (386 Points)
Replied 08 September 2009

opening stock would appear on the debit side of the trial balance.this opening stock is the previous years closing stock.

ashish gupta ( student) (1922 Points)
Replied 08 September 2009

Yeah, opening stock will appear.

Gautam Jaiswal (STUDENT) (38 Points)
Replied 02 June 2019

Why closing stock shown in trial balance ???

Prachi Bansal (3124 Points)
Replied 11 January 2021

Closing Stock is the balance of unsold goods that are left from the purchases made during an accounting period. The value of total purchases is already included in the Trial Balance. If the closing stock is added to the Trial Balance, the effect will be doubled.

Hence, it will not reflect in the Trial Balance.

However, if closing stock is shown in the trial balance it means that the purchases are adjusted to the effect.

Ayush (Executive ) (6132 Points)
Replied 30 March 2023

The closing stock is an asset, and it is shown in the trial balance after being adjusted against purchases to calculate the cost of goods sold and determine the accurate profit or loss of a business.