Question

Which of the following entries is passed for recording the closing stock, when a firm purchases goods worth Rs. 1,00,000 during the year and records a Sales worth Rs. 85,000.

• A. Stock A/c -------- Debit 15,000
  To Trading A/c 15,000
• B. Stock A/c -------- Debit 15,000
  To Sales A/c 15,000
• C. Trading A/c -------- Debit 15,000
  To Closing Stock A/c 15,000
• D. Trading A/c -------- Debit 15,000
  To Purchases A/c 15,000

Answer 1

The correct option is A Stock A/c -------- Debit 15,000

To Trading A/c 15,000

The entry to be passed in the books for closing stock will be

stock A/c --------------- Debit 15,000

To Trading A/c 15,000

The firm had purchased goods worth RS-1,00,000 and sold Goods worth RS-85,000 hence, goods worth RS-15,000 are still left in the stock and will be transferred to trading account.