Trial balance
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
24 September 2011
I have one doubt,its simple but some confusion .........
The question is
" Why we are taking opening stock amt for the preparation of Trial balance instead of closing stock?"
I expecting a simple but logic answer from your side....
The question is
" Why we are taking opening stock amt for the preparation of Trial balance instead of closing stock?"
I expecting a simple but logic answer from your side....
24 September 2011
That is because all balances of last year have to be considered in the current year's trial balance after adjusting for the transactions during the year.
No transactions take place in the opening stock ledger. Moreover, opening stock has to be presented separately in the financial statements.
Further, closing stock is not included in the trial balance becuase it is the only item which is presented twice in the financial statements. Once in the credit side (P&L) and once in the debit side (Balance Sheet). So even if you include it in the trial balance it will cancel out.
No transactions take place in the opening stock ledger. Moreover, opening stock has to be presented separately in the financial statements.
Further, closing stock is not included in the trial balance becuase it is the only item which is presented twice in the financial statements. Once in the credit side (P&L) and once in the debit side (Balance Sheet). So even if you include it in the trial balance it will cancel out.
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
- House Property Reporting in ITR
- Refund Annexure-B
- TDS Claim year
- Liable to deduct tds and 44ADA
- Refund of 20%pre-deposit paid for stay application
- TDS Challan Code
- Nomination of Bank for refund in itr 2
- Section 56(2) of the Income tax Act 1961 , Gift to relative .
- Rent lease agreement
- REGARDING SECTION 44AE
- Internship/Academic shown in Salary Pay Slip of a Doctor
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
