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Regarding closing stock

This query is : Resolved 
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(Querist)
05 October 2014 Why closing stock is not shown in trial balance?
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Sanket

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Sanket (Expert)
05 October 2014 closing stock is not a
transaction having a two
way effect any given
point in time.It is only an
indication of the goods
lying in the factory at the
end of the year.It is
therefore showed below
the trial balance and not
in the trial
balance.However in order
to derive at the exact
gross profit the closing
stock is taken into
consideration in the
trading account and also
appears as an asset in
the balance sheet.In
some case the closing
stock appears as an
adjusted purchase
account in the trial
balance and in this case
it does not appear in the
trading account but
appears only in the
balance sheet.
The main reason is that
we do not pass any entry
for consumption.
hence we do not prepare
any ledger account for it.
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