What will the treatment of Opening Stock, Adjusted Purchase, Purchase Return and closing stock, if all these items are given in Trial Balance? Please help me out.
Regards
VIJAY GARG (Accounts Manager) (48 Points)
03 March 2018What will the treatment of Opening Stock, Adjusted Purchase, Purchase Return and closing stock, if all these items are given in Trial Balance? Please help me out.
Regards
Vinod lalwani
(28 Points)
Replied 03 March 2018
satish
(teaching)
(2046 Points)
Replied 03 March 2018
No
adjusted purchases = Opening Stock + Net Purchases - Closing stock
satish
(teaching)
(2046 Points)
Replied 03 March 2018
there is an error in the question. usually closing stock will not covered under trail balance. why because closing stock is an account balance.
but closing stock will exist in trail balance along with either cost of goods sold or adjusted purchases.
VIJAY GARG
(Accounts Manager)
(48 Points)
Replied 04 March 2018
VIJAY GARG
(Accounts Manager)
(48 Points)
Replied 04 March 2018
Satishji, thanks for the reply. But my query is still there that how trading account will be prepared?
satish
(teaching)
(2046 Points)
Replied 04 March 2018
gross profit = sales- cost of goods sold
= sales - (opening stock + purchases + direct purchases - closing stock)
= sales - ( adjusted purchases + direct purchases)
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