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Why Closing Stock Not shown in Trial Balance?
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Answer / neva
The TB is a summary of transactions represented by debits and credits in the ledger. Closing stock of finished goods is not a transaction but a working. However in the next period when this stock is sold there is a transaction ( dr opening stock cr sales) hence opening stock of finished goods is shown in the TB. Also take note closing stock of all other materials other than finished goods is shown in the TB because they are part of a transaction ( either cash or credit transaction - dr stock, cr bank/ accounts payable)
| Is This Answer Correct ? | 1 Yes | 1 No |
Answer / pawan verma, accountant
Trial Balance is that which we get balance of all ledger either the balance is Dr. or balance is Cr. & transaction by cash or cheque but in the closing stock there is no this type of transaction, so stock is not a ledger.
Furhter we can also show closing stock in trial balance. In this case Closing Stock will be apeared in Trial Balance & while preparing Final Accounts it will be shown in Balance Sheet only.
| Is This Answer Correct ? | 1 Yes | 2 No |
Answer / latha
Examiners want to confuse us. thats the reason why closing
stock is shown in adjustments.. Ha ha ha
| Is This Answer Correct ? | 1 Yes | 2 No |
Answer / akbar
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.
| Is This Answer Correct ? | 0 Yes | 2 No |
Answer / raksha
Closing stock showing under the heads of inventory of trial
balance
| Is This Answer Correct ? | 7 Yes | 21 No |
Answer / avinash
all the ledger closing balances appear in trial balance,
where stock has no ledger account and cl. stock is done
through physical verification..
| Is This Answer Correct ? | 25 Yes | 42 No |
Answer / rakesh
closing stock not shown in the trial balance because its
year ended item. closing stock has a profit thats cant be
shown in current year. that why it cant be shown in the
trail balance. some times it can be shown in the trial
balance , in that time it was not adjusted from purchase.
means it doesn't adjusted from trial balance.
| Is This Answer Correct ? | 14 Yes | 42 No |
Answer / sanjay kumar
Becouse the value of closing stock evaluate on the market
price or cost of the materials which ever less on closing
date.
| Is This Answer Correct ? | 8 Yes | 37 No |
Answer / ravi
closing stock will not be shown in the trial balance
because the closing stock of this year becomes a opening
stock of next year so it will be shown in trial balance
| Is This Answer Correct ? | 33 Yes | 72 No |
Please let me know the journal entry for the below. "A" paid Rs.100 to "C" on behalf of "B"
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