wiz-icon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

Where is the closing stock appearing in the Trial Balance is shown?

A
On the Dr. side of Trading A/c.
No worries! We‘ve got your back. Try BYJU‘S free classes today!
B
On the Cr. side of Trading A/c.
No worries! We‘ve got your back. Try BYJU‘S free classes today!
C
On the Assets side of Balance Sheet.
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
D
On the Cr. side of Trading A/c and on the assets side of Balance Sheet.
No worries! We‘ve got your back. Try BYJU‘S free classes today!
Open in App
Solution

The correct option is C On the Assets side of Balance Sheet.
Closing stock is usually not shown in the trial balance and is shown as an adjustment below the trial balance. Hence. when its shown in the trial balance it will only appear in the balance sheet on the assets side and not in the trading account. It is the stock left in business at the end of the year.
It is basically the inventory the company has hands on at the end of the year or is unsold. It includes work-in-progress, raw materials, finished goods etc .

flag
Suggest Corrections
thumbs-up
0
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
ACCOUNTANCY
Watch in App
Join BYJU'S Learning Program
CrossIcon