dear all we have to transfer closing stock to next financial year. we have to closed books. what will be journal entries for closing stock transfer. please help
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Quick Summary
This discussion clarifies the journal entries required to transfer closing stock to the next financial year when closing the books. It explains the debit and credit entries for opening and closing stock accounts, and how they relate to the trading account or cost of sales. The conversation also briefly touches upon the treatment of working capital interest charges in relation to finished goods and tax deductibility.
Another issue to discuss is your working capital interest charges. They are included into the finished goods because, interest is tax deductible. That is another tax accounting aspect