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G.k of accounting
what is the reason for not taking closing stock in trail balance
Replies (4)
Closing stock account is appearing in Trial balance because Closing stock account is open or prepare only after trial balance .
Want correct above "not appearing " instead of "appearing "
Clising stock is usually shown as an additional information or an adjustment outside the trial balance.
Closing stock is the leftover balance out of goods which were purchased during an accounting period. Total purchases are already included in the trial balance, Hence closing stock should not be included in the trial balance again. If it is included, the effect will be doubled.
Closing stock is the leftover balance out of goods which were purchased during an accounting period. Total purchases are already included in the trial balance, Hence closing stock should not be included in the trial balance again. If it is included, the effect will be doubled.
This happens in periodic inventory system, when you don't maintain inventories ledger. So at the time of closing books, inventory-at-hand is created as asset by crediting Trading account.
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