Difference between closing stock & inventory
This query is : Open
hemanth kumar
(Querist)
21 October 2013
Dear Sir,
I want to know the difference between the closing stock in trading account and inventory in Current assets and how are they used in same accounting.
Thanking you
I want to know the difference between the closing stock in trading account and inventory in Current assets and how are they used in same accounting.
Thanking you
CA Pallav Singhania
(Expert)
21 October 2013
Inventory
Inventory includes a small business's finished products, as well as the raw materials used to make the products, the machinery used to produce the products and the building in which the products are made.
In other words, anything that goes into producing the items sold by your business is part of its inventory.
Stock
Stock is the finished product that is sold by the business. In some cases, stock is also raw materials, if the business also sells those products to its customers.
For example, a car dealership's stock includes cars, but also can include tires, engine parts or other car accessories.
Inventory includes a small business's finished products, as well as the raw materials used to make the products, the machinery used to produce the products and the building in which the products are made.
In other words, anything that goes into producing the items sold by your business is part of its inventory.
Stock
Stock is the finished product that is sold by the business. In some cases, stock is also raw materials, if the business also sells those products to its customers.
For example, a car dealership's stock includes cars, but also can include tires, engine parts or other car accessories.
22 October 2013
Yes agreed with aryan.
hemanth kumar
(Querist)
02 November 2013
1.Closing stock - 25,000/-
2.Closing Inventory - 35,000/-
3.Civil work in progress - 10,000/-(Closing)
4.Capital Work in Progress - 15,000/-Closing)
Dear Sir,
How should we treat the above points in Final accounts.Kindly execute my mere doubt.
Thanking you
2.Closing Inventory - 35,000/-
3.Civil work in progress - 10,000/-(Closing)
4.Capital Work in Progress - 15,000/-Closing)
Dear Sir,
How should we treat the above points in Final accounts.Kindly execute my mere doubt.
Thanking you
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