Question

Explain about closing stock in trial balance.

Answer 1

HEY,

U R ANSWER ♠.....

CLOSING STOCK :-

CLOSING STOCK MEANS STOCK IN TRADE , OF THE YEAR ENDING .

A STOCK WHICH IS AVAILABLE AT THE END OF FINANCIAL YEAR , THIS STOCK IS KNOW AS CLOSING STOCK.

CLOSING STOCK DOES NOT SHOWN IN TRIAL BALANCE.

Answer 2

Closing stock is the leftover balance out of goods which were purchased during an accounting period but are unsold till now. Total purchases are already included in the trial balance, Hence closing stock should not be included in the trial balance again. If it is included, the effect will be doubled.