Closing stock A/c appearing in the trial balance will __________.

be credited to Trading A/c only

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be credited to Trading A/c and shown on the Assets side as Closing stock

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be shown on the Assets side as closing stock

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shown on debit side of Trading A/c

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Solution

The correct option is A be shown on the Assets side as closing stock
Stock which is unsold at the end of the year is called as closing stock. Closing stock is normally appears out of trial balance.
If closing stock is appearing in the trial balance, it means the adjustment of closing stock is already done. In such case, closing stock will be shown only in the balance sheet in asset side.

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Similar questions

Dr. Balances	(₹)	Cr. Balances	(₹)
Opening Stock	38,000	Capital	3,00,000
Purchases	12,60,000	Secured Loan	20,000
Wages: Factory Office	20,000 1,600	Sales	15,40,000
Salary	54,000	Sundry Creditors	40,000
Business Premises	2,00,000	Returns Outwards	15,000
Furniture and Fixtures	40,000	Bills Payable	12,000
Packing Machinery	60,000	Bank	33,000
Tools	15,000
Rent	58,400
Loan to Mr. Ram Narain on 1st November, 2016 @ 12% p.a.	10,000
Sundry Debtors	1,31,500
Cash in Hand	7,400
Drawings	60,000
Bills Receivable	4,100
	19,60,000		19,60,000

2 \frac{1}{2} %

If 'adjusted purchases' and 'closing stock' are given in the trial balance, will you transfer 'closing stock' to trading account? Give reason.

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