Question

Closing stock in the Trial Balance implies that _____________.

• A. it is already adjusted in the opening stock
• B. it is adjusted in the Purchase A/c
• C. it is adjusted in the Cost of Sale A/c
• D. it is adjusted in the Profit and Loss A/c

Answer 1

Answer: (B)

it is adjusted in the Purchase A/c

Closing stock is normally appear out of the trial balance. If the trial balance is appearing in the trial balance, it means that it has been already adjusted in the purchase account.