Opening stock is not given in the trial balance . Only closing stock is given in the adjustment . How do I solve this question ?
Answers
Explanation:
how to slove without opening stock?
Answer:
The question asked by you in explained in detail below.
Explanation:
Closing stock represents the cost of goods that can be sold lying in stores at the end of the calculation period. The year-end stock becomes the first stock of the following year and is reflected in the balance of the next year's trial. In some cases, the opening and closing stock is adjusted by a purchase account. In this regard, the recorded entries are as follows:
Closing the Stock A/c Dr.
To Purchases A/c
These entries reduce the amount in the purchase account and are also known as adjusted purchases that are displayed on the side of the debit account in the trading account with profit and loss. Another important point when opening and closing stocks are adjusted by purchase, the trial balance does not reflect any opening stock. Instead, the closing stock comes from a balance of trial and adjusted purchases.