when does closing stock shown in trial balance?
Answers were Sorted based on User's Feedback
Answer / subrata.interview
Closing Stock never shown in Trial Balance
Is This Answer Correct ? | 31 Yes | 4 No |
Answer / binoy
The reason why closing stock is not taken into account in a
trial balance is because a trial balance is a balance of
all ledger account a given point in time.It records only
transactions which have a two way effect for EG:Purchases
where goods are bought against cash or credit and sales
where goods are sold against cash or credit..But closing
stock is not a transaction having a two way effect any
given point in time.It is only an indication of the goods
lying in the factory at the end of the year.It is therefore
showed below the trial balance and not in the trial
balance.However in order to derive at the exact gross
profit the closing stock is taken into consideration in the
trading account and also appears as an asset in the
balancesheet.In some case the closing stock appears as an
adjusted purchase account in the trial balance and in this
case it does not appear in the trading account but appears
only in the balance sheet.
The main reason is that we do not pass any entry for
consumption. hence we donot prepare any ledger account for
it.
Is This Answer Correct ? | 18 Yes | 1 No |
Answer / rani
At the end of the year Closing stock is shown in the balance
sheet after c/d from trial balance.
Is This Answer Correct ? | 0 Yes | 0 No |
Answer / s venkateswarans
WHEN YOU MAKE PURCHASE ENTRY IN STOCK ACCOUNT (LIQUID
ASSET) AND MAKE CONSUMPTION ENTRY TO GIVE EFFECTS IN
FINANCIAL ACCOUNT THEN THE CLOSING STOCK CAN BE TAKEN IN
TRIAL BALANCE.
HOPE THIS ANSWER WILL BE CORRECT
IF U DEEM THIS IS CORRECT, PLEASE DO POST YOUR REPLY @
venkat121264@gmail.com
Is This Answer Correct ? | 1 Yes | 5 No |
How to do audit?
Beginning Return earning in 2008 differ from that of audited report2007 is 3,00$. could you recomment the adjustment entry? Particualry, I do not sure where to put on debit side. debit??? credit Return earning:3,490$.
Is tds deductible on discount given to customers who book the flats? Eg: If Im a construction company.
2 Answers Dinesh, Sidharth Construction and Trading,
what was ur role in team?
Assume we have taken a vehicle on leasing Cost Of vehicle Rs.2445000 (vat 261964.00)on 22/12/09 ,the vecle lease for 4 years and made intial paymenent as Rs.25000 &the monthly leasing amount Rs.59806.00,pls let me know the double entries for this finacial year (with figers)
internal checksystem
During the year a firm has received TDS of Rs.30 lakhs and out of this an amount of Rs.9 lakhs was adjusted against the taxes. However, in the balance sheet under the head assets,the firm shown Rs.30 lakhs towards TDS. Is it correct. In my openion, in the balance sheet, the assessee has to show only Rs.21 lakhs as asset in the balance sheet, after reducing the tax adjustemnt of Rs.9 lakhs. Pl. Clarify.
The difference between interim audit and final audit?
If the supplier is register in tax department,but he is not charging vat, what is the reason, get me as soon as possible,
I 've Tally7.2 in my pc & i have Data from 2005 but my Auditor wants only data from 2008 -2009 How do i send that years data i means from 2008 -2009
what are the cost audit and management audit?
what is your achivements while conducting articleship during your training period in chartered accountancy course
1 Answers Price Waterhouse Coopers,