Why should closing stock be shown two times
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
16 July 2012
Dear all,
why should closing stock be shown two times (first time in P&L and second time in Balance Sheet)
please explain
why should closing stock be shown two times (first time in P&L and second time in Balance Sheet)
please explain
17 July 2012
As per Double Entry System there is double impact of every transaction.
Taking closing stock to P&L account it will Up ur profit. Hence your Reserve & Surplus will up (i.e. liability side) and putting the stock as assets item ur Assets will up. Hence both side matched.
Taking closing stock to P&L account it will Up ur profit. Hence your Reserve & Surplus will up (i.e. liability side) and putting the stock as assets item ur Assets will up. Hence both side matched.
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