Question

How is closing stock valued? (Answer in one sentence)

Answer 1

CLOSING STOCK VALUED AT MARKET PRICE

WHICH PRICE IS LOW CLOSING STOCK VALUED ON IT.

Answer 2

Closing stock is the products which at the end of the year remain unsold. It is priced at either cost price or profit, whichever is less.

• Closing stock is the amount of stocks at the end of a reporting period that a business still has on hand. It involves inventory of raw materials, manufacturing and finished goods.
• The quantity of the closing stock can be calculated using a physical inventory count.
• Closing stock is shown on the Trading Account's on the credit side. Thus, the Trial Balance will display all Revised Purchases A / c and Closing Stock Account.