Why don,t show the Closing stock in Trial Balance.

Answers were Sorted based on User's Feedback



Why don,t show the Closing stock in Trial Balance...

Answer / maynk

Because trial balence is a balence/extract of every
ledger's balence ,each ledger having double effect which
goes to trial balence ,E.G for making payment one effect is
credit cash and dabit to party,every ledger with double
effect goes to only trial balence.
hence-closing stock is already included in
purchases+opening-Sales and each entry of three with double
effect shown in trial balence that is why closing stock is
not shown in trial balence.

Is This Answer Correct ?    17 Yes 1 No

Why don,t show the Closing stock in Trial Balance...

Answer / mr gvk

Closing stock comes in trading account.SO that profit can be ascertained for the concerned period.
Moreover , trial balance shows the balancing figures of the Items..

In one way, Closing stock is appearing in the trail balances via, sales ,purchases and opening stock. The difference of opening stock and sales added with opening stock gives closing balance figure.

It is a good Corporate practice to Include the closing stock as a foot note in down the sheet of trail balance.

Is This Answer Correct ?    0 Yes 0 No

Post New Answer

More Accounting General Interview Questions

what is mean by accounts

7 Answers  


What is the Entry of A Demand Draft is prepared for rs.4500 from UTI bank after bank charges?

6 Answers   LG Soft,


Differance between US GAAP and UK GAAP?

0 Answers  


Rs.5000 paid school fees of Director's son. pass the journal entry

9 Answers   Duravit, Shriram,


You pay for a product and you get the bill. When to book the expenses

1 Answers  






I want to know the Payroll Accounting Questions

0 Answers   Genpact, Infosys,


Tell me the meaning of long-term notes payable is or long term liabilities?

0 Answers  


As an importer of goods through letter of credit, (payment is done through indian bank to foreign back), my question is who is liable to pay with holding tax when the payment is remitted to foreign bank, whether the buyer(importer) or the seller and why?

0 Answers  


the amount paid aganist the outstanding salary and the amount paid aganist the loan (liabilities)-how and where to make an entry?

2 Answers  


What's the accounting entry when an Invoice is created in AR?

0 Answers  


why the accounts as personal real and nominal

2 Answers  


Tell us what is the abbreviation for the accounting terms debit and credit?

0 Answers  


Categories