Jurnal entry of closing stock

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]