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Jurnal entry of closing stock

A/c entries 10939 views 2 replies

Dear All,

 

Please  clear  me the JE of closing stock after Trail balance is 

closing stock A/C  Dr.

                        to,  purchase A/C

is right or wrong, if wrong then please tell me what is the right entry for this?

Replies (2)

closing stock A/c dr. to 

                 Trading A/c or P/L ac.

Some time creation of Trading or Profit and Loss Account create problem while posting such kind of adjustment entry.

There is one alternative which can be used.

First create a ledger name COST OF GOOD SOLD which need to be classified under direct expenses or trading accounts.

[We know that Cost of good sold= Opening Stock + Purchases - Closing Stock]

 

Than transfer Opening stock and purchases to Cost of good sold by way of journal entry.

 

Afterward closing stock can be posted by passing Journal Entry

 

Cost of good sold A/c Dr.        xxxx

         To Inventory                  xxxx [classified under Inventory]


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