Question

Closing Stock appearing in the Trial Balance is shown_________________.

• A. on the credit side of Profit and Loss A/c
• B. on the credit side of Trading A/c
• C. on the Assets side of the Balance Sheet
• D. on the liabilities side

Answer 1

The correct option is C on the Assets side of the Balance Sheet

Closing stock usually doesn't appear in the trial balance, if it does it will appear only in the balance sheet on the assets side and not in the trading account.

It is the stock left in business at the end of the year. It is basically the inventory the company has in hands at the end of the year or is unsold. It includes work-in-progress, raw materials, finished goods, etc.