Question

In which of the following opening stock does not appears?

• A. Trading Account
• B. Trial balance
• C. Balance sheet
• D. (B) and (C)

Answer 1

Answer: (C)

Balance sheet

Opening stock is the stock of goods in hand at the beginning of the accounting year. This is the stock of goods which has been carried forward from the previous year and remains unchanged during the year and appears in the trial balance. In the trading account it appears on the debit side because it forms the part of cost of goods sold for the current accounting year.