as per Accounting and finance concept whatever ends having closing balance that is the opening balance of next year it's very clear for me...
... for an example if I am having opening stock rupees 10 lakh my purchases is 3 lakh and my sales is 4 lakh so the closing stock will be 9 lakh this is correct assumption
some people's making Trading account closing stock is more than opening stock.. this is correct manner???
could you please guide me the opening stock closing stock as per Accounting how we should have to show in final accounts
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Basics but some confusion help me
Replies (12)
Quick Summary
Closing stock= Opening stock- sales+Purchases
Hence, Closing stock=10lakh-4lakh+3lakh
Closing stock=9 lakhs.
@ sneha latha mam , thank you mam,
Hence, Closing stock=10lakh-4lakh+3lakh
Closing stock=9 lakhs.
this is the basic methodology to assume closing stock in Accounting????? mam
Hence, Closing stock=10lakh-4lakh+3lakh
Closing stock=9 lakhs.
this is the basic methodology to assume closing stock in Accounting????? mam
Yes, this is the way to arrive to closing stock
The above formula works only in trading business. For manufacturing consumption needs to be considered. Even in trading business depending on the scenario closing stock can be more than opening stock. There is no restriction that in every case it has to be less.
@ thank you very much CA altamush Zafar sir..
This is not correct as profit on sale of product is not considered while calculate Closing stock.
Correct Formula is
Opening Stock + Purchase + Gross Profit - Sales = Closing Stock
Correct Formula is
Opening Stock + Purchase + Gross Profit - Sales = Closing Stock
@ Rashmi Gandhi mam thank you so much my honourable mam
Welcome 🤗🤗
@ honourable Rashmi Gandhi mam , what is the difference of 26 As vs AIS report ??
26AS show only details regarding TDS,TCS and Tax payment while AIS all significant financial information whether or not TDS / TCS deducted
Rashmi Gandhi mam thank you ,thanks for your prompt response
Welcome Dear
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