Question

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

Explain.

Answer 1

Hey user!

Generally Closing stock does not appear in trial balance .It Is usually given as an additional information . (Closing stock is the balance of goods and sold out of opening stock and purchases ).To incorporate the closing stock in the books ,closing stock account is debited and trading account is credited by the amount of unsold stock at the end ,Closing stock appears as an asset on the Asset side of the balance sheet .