Closing stock appearing in the Trial Balance will be taken to __________.

Trading account only

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Balance sheet only

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Trading account and balance sheet

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None of the above

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Solution

The correct option is B Balance sheet only
Closing stock is that goods which is unsold stock at the end of the year. Normally closing stock appears out of the trial balance.
If an adjustment entry is already passed at the end of accounting year, the value of closing stock will appear in trial balance.
If closing stock appearing in trial balance, this will be taken to balance sheet only as adjustment entry is already passed.

Suggest Corrections

Similar questions

A Statement of Affairs is similar to the :

(a) Balance sheet
(b) Trial balance
(c) Trading Account
(d) Profit & Loss Account

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

Debit Balances	₹	Credit Balances	₹
Purchases	3,00,000	Sales	4,79,760
Drawings	3,500	Purchases Return	12,200
Plant and Machinery	1,23,000	Capital	5,90,000
Motor Vehicles	1,76,000	Creditors	11,870
Building	3,80,000	Bank Loan	33,700
Sundry Debtors	80,000
Stock in Trade (1.4.2017)	8,400
Sales Return	1,800
Wages	2,800
Carriage Inwards	890
Carriage Outwards	300
Telephone Charges	3,290
Salaries	12,000
Insurance and Taxes	31,200
Printing and Stationery Expenses	1,350
Cash in Hand	3,000
	11,27,530		11,27,530

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