Query
This query is : Resolved
06 December 2013
Hey friends,
What will we do in a situation in which opening stock does not appear in the trail balance. Ajustment informs us that opening stock is included in purchases.
Please let me know the treatment in final accounts??
06 December 2013
Dear Friend,
--Opening Stock will always appear in the Trial balance.
-- There may be another situation:
Trial balance is a list of closing balances if 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.
It seems to me there may be error with no solution. but you can patch up by passing following entry:
Opening Stock Debit
To Purchase (treat it as consumption)
--Opening Stock will always appear in the Trial balance.
-- There may be another situation:
Trial balance is a list of closing balances if 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.
It seems to me there may be error with no solution. but you can patch up by passing following entry:
Opening Stock Debit
To Purchase (treat it as consumption)
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- Pass word to open justification report for Q1 for FY 2026-27
- PPF interest-As Exempt Income disclosure
- Section 194JA & JB Income which ITR Form to use
- Scrutiny and reopening of past returns
- Type of Capital Gain
- F & O PROFIT REPORTING FOR AY 2026-27
- Booth for sales promotion
- Difference in GSTR3B system generated which is correct and actual Payment it asks
- GST ON TRAVELLING BILLS
- TDS on Rent received on redevelopment of building
- Tax on Deemed Capital Gain
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
