Treatment of opening and closing stock

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This discussion clarifies the proper accounting treatment for opening and closing stock when preparing financial statements. Opening stock is recorded as an expenditure on the Profit & Loss account, while closing stock appears as income on the same account. For the Balance Sheet, closing stock is classified as a current asset.

Daya

Daya (Querist)
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30 September 2023 Treatment of opening stock and Closing stock
In profit and loss account and balance sheet while preparing profit and loss and balance sheet.

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
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01 October 2023 Closing Stock is a current asset in BS and is shown in PL along with Opening Balance

RAJA P M

RAJA P M (Expert)
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01 October 2023 In PandL --> Opening Stock in Expenditure side & Closing Stock in Income Side...... In BS ---> Closing Stock in Asset Side as Current Asset....

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