Question

What is meant by closing Stock? How is it valued and shown in the final accounts? Explain

Answer 1

closing stock is the amount of inventory that the business still has on hand at the end of reporting period

Answer 2

Closing stock is the goods that the seller or the organization has remained with after the purchases of some other goods in a given financial year or a given transaction period, the value of the closing stock is reached out by subtracting the value of goods sold from the opening stock, the answer is the value of the closing stock for that financial year or transaction period.