closing stock is
value of
a) cost price
b) market price
c) sales price
d) market price or cost price whichever is lower
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51
Closing Stock is the value of?
Answer: d) Market price or Cost price, whichever is lower.
Closing Stock is the stock of unsold goods remaining at the end of an accouting period.
It is always valued at cost or market price, whichever maybe less. [It is given in the trial balance or as an adjustment.]
While preparing final accounts, it is given two effects, that is, it is credited to trading account credit side and on the assets side of Balance sheet.
Journal entry of Closing Stock:
Closing Stock A/c Dr.
To Trading A/c
[Being Closing stock transferred to Trading A/c.]
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Answer:
d market price or cost price whichever is lower
Explanation:
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