trading account

Dear Friend,

Stock is classified as follows  

1.  Opening Stock 
2. Closing Stock.

Here, "Closing Stock" refers to 

• Closing Finished goods  / stock
• Stock in process
• Stock in semi finished stage 

Now, let us focus our attention only on "CLOSING STOCK".

This "CLOSING STOCK" is an item, which carries unique commercial feature, i.e. it never factors in the "TRAIL BALANCE"., which enables it to reflect twice in the Financial statements., first in (1) Balance Sheet and second in (2) the Statement of Profit & Loss.

You all may be sure that there is no such item like "CLOSING STOCK", with similar features.

hi friends

basically when we entered the amount of closing Stock,OPening Stock together with Purchases during the year. We tries to find out the stock consumption during the year that should be charged from the trading account.Due to the reason of presentation we mention separately the amoun of Cl. STock/Opening Stock/Purchases......................Stock is Real account........................Stock consumption is Nominal account...............

Regards

Jitendra