Question

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

• A. On the Dr. side of Trading A/c.
• B. On the Cr. side of Trading A/c.
• C. On the Assets side of Balance Sheet.
• D. On the Cr. side of Trading A/c and on the assets side of Balance Sheet.

Answer 1

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 .