Question

7. When opening stock and closing stocks are not written in Trading A/c?
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Answer 1

According to matching concept , all the expenses should be charged against the revenue generated during the accounting period .

Closing stock is the unsold stock remained at the end of the year that means we cannot generate any revenue from it in that period

Following the matching concept , We cannot charge it against the sales revenue generated in that period .and thus we deduct it from the cost of good purchased by showing it in the credit side .

Also we do not deduct it directly from the purchases because future benefits are expected to flow from that and thus show it in the asset side of balance sheet at the end of the year to account it as opening stock in the next year .

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Answer 2

Answer:

I dont know bro sorry please