Why don't show the opening & closing stock in Trial Balance.

Answer Posted / ameer

Opening stock is shown in the tb. Because it is the stock balances of previous year. Whereas closing stock is not entered in tb. Because the stock is created only when purchase made.Purchases are show already in tb.When we show the closing stock, there is the double effect of purchases. Stock is already included in the purchase on the tb

Is This Answer Correct ?    0 Yes 0 No



Post New Answer       View All Answers


Please Help Members By Posting Answers For Below Questions

What are the three factors that can affect your cash flow and business profitability?

593


In the balance sheet, where do you show tds?

627


what is the new rate of c.s.t in uttraklhand

1888


can any body tell me the procedure to learn accountancy with easy tips.i.e., layman accounting policy and rules of debit and credit.

1662


Tell us what is a cpa?

535






Entry for revenue item will be Expenses A/C Dr to Cash. But in the Profit and Loss account we will see the expenses with a pre fix of To Expenses Why?

1467


A motor car purchased on 1 apr 10 worth rs 10000 taking a loan from bank of rs 8000. Emi will b 500 pm inclusive of interest rs 100 pm.all repayments are done by bank overdraft. Prepase bshEet & P&L as at 31 mar 10

1616


what is opening stock formula?

983


Were i have to enter for agreements in tally and in which ledger it will come

1212


Mobile on Rupees 2000 purchase for office use not for staff....What entry in accounts..?????

970


Which accounting application you prefer most and why?

674


what is the method deposit of wct in Delhi

1726


What is meant by daily accrual and booking?

662


When a merchant sales of goods included/charged on packaging charges ,cartages and insurance;i.E :-Indirect income/revenue income and indirect expense/revenue expenditure. Plz suggeste me correct answer.Through messages,mail .

1157


How can you define departmental accounting?

800