Why we show always closing stock in credit?
Answer Posted / bhushan
As per the matching principal of the accounts only those
expenses which are related to earn the revenue are debited
to the trading & profit and loss account, so that we can
arrive at the accurate profit or loss figure. And as the
purchase of material is debited to the trading account we
need to separte the material cost which does not match to
the revenue during the year hence we put the closing stock
which is not utilised yet to earn the revenue and will be
utilised in the future.Thats why we always put the closing
stock fugure to the credit side of Trading & P&L a/c
Is This Answer Correct ? | 53 Yes | 5 No |
Post New Answer View All Answers
example wrongly financial statments showing vat refund (under Advances) for the finanical year 08-09 , but present assement year after assement by cto given vat refund more than ledger showing balance then decided to every month set off vat payable to vat refund(advance) but more than recoverd compare with company and cto then what is the entry to be take.
how to pass journal entries for reverse tax on input tax paid
What is a trial balance in accounting?
Tell us what kind of work environment do you prefer?
In 3 way match.....Order qty is 100 and received 90 and 10 got rejected. But the supplier sent an invoice for 100 qty. what are the steps we need to take in SAP. Whether we need to reject the invoice or process with the 90 qty .please explain with real time.
Tell me in accounting, vat abbreviates what?
Tell me where do generally accruals appear on the balance sheet?
As you know executive accounting?
What is the entry for closing stock value reduction?
When their is one pick point and four unloading places with in same district their is need to write four number of way biils
Explain what are the rules for debit and credit for different accounts to increase the amount in your business accounts?
How to group the companies in tally?
A loan of 10000 with 10% interest is fully due after 6 month. What will accrue differed, outstanding?
entry for cash received from debtors
what is miscellaneous expenditure??