When does closing apper inside the trial balance

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Solution

Dear Student
Closing stock is given inside the Trial Balance when the entry to incorporate the closing stock in the books has already been passed. It would imply that the Closing Stock must have been deducted out of Purchases Account. Hence, in such a case, Closing Stock will not be shown in the Trading Account but will appear on the Assets side of the Balance Sheet only.
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Similar questions

Show the treatment of prepaid expenses, depreciation, closing stock at the time of preparation of final accounts-

(a) When given inside the trial balance.

(b) When given outside the trial balance.

Show the treatment of prepaid expenses, depreciation and closing stock at the time of preparation of final accounts when:

(a) When given inside the Trial Balance?

(b) When given outside the Trial Balance?

When is the closing stock shown in the trial balance ?

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