If closing stock appears in the trial balance then it appears in _______.
A
Trading account
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B
Profit and Loss account
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C
Balance sheet
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D
Profit and loss appropriation
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Solution
The correct option is C Balance sheet If closing stock
appeared in Trial balance it means the purchases has been reduced to the extent
of stock amount at the end of the period. The accounting treatment will be
closing stock to be shown in Balance sheet under current assets and it should
not be credited to Trading a/c.