Interested to Buy Any Domain ? << Click Here >> for more details...
when does closing stock shown in trial balance?
- 6 Answers
- 9678 Views
- Ernst Young, I also Faced
- E-Mail Answers
Answers were Sorted based on User's Feedback
Answer / subrata.interview
Closing Stock never shown in Trial Balance
| Is This Answer Correct ? | 31 Yes | 4 No |
Answer / binoy
The reason why closing stock is not taken into account in a
trial balance is because a trial balance is a balance of
all ledger account a given point in time.It records only
transactions which have a two way effect for EG:Purchases
where goods are bought against cash or credit and sales
where goods are sold against cash or credit..But closing
stock is not a transaction having a two way effect any
given point in time.It is only an indication of the goods
lying in the factory at the end of the year.It is therefore
showed below the trial balance and not in the trial
balance.However in order to derive at the exact gross
profit the closing stock is taken into consideration in the
trading account and also appears as an asset in the
balancesheet.In some case the closing stock appears as an
adjusted purchase account in the trial balance and in this
case it does not appear in the trading account but appears
only in the balance sheet.
The main reason is that we do not pass any entry for
consumption. hence we donot prepare any ledger account for
it.
| Is This Answer Correct ? | 18 Yes | 1 No |
Answer / rani
At the end of the year Closing stock is shown in the balance
sheet after c/d from trial balance.
| Is This Answer Correct ? | 0 Yes | 0 No |
Answer / s venkateswarans
WHEN YOU MAKE PURCHASE ENTRY IN STOCK ACCOUNT (LIQUID
ASSET) AND MAKE CONSUMPTION ENTRY TO GIVE EFFECTS IN
FINANCIAL ACCOUNT THEN THE CLOSING STOCK CAN BE TAKEN IN
TRIAL BALANCE.
HOPE THIS ANSWER WILL BE CORRECT
IF U DEEM THIS IS CORRECT, PLEASE DO POST YOUR REPLY @
venkat121264@gmail.com
| Is This Answer Correct ? | 1 Yes | 5 No |
Is vendor statement recon done as two way process? Statement to Ledger Ledger to stement?
4 Answers Capital IQ, Cognizant,
How to involve people in audit?
Can we claim for the amt. of CST paid if in the case of sales return with in six month?
What's are difference between Capital Reserve & Reserve Capital ?
Expand---------PRSM
my friend paid Rs.6.00 Lakhs go a government office through a demand draft for a particualr permission/license. But actual fee payable by is Rs.2.00 Lakhs. Peviously submitted demand draft for Rs.6.00 Lakhs has not been adjusted into governmet account. he went to govt.office and requested to return the 6.00 Lakhs demand draft and assured that he wll pay th actual fee of 2.00 Lakhs. Can he get back the previously submitted Rs.6.00 Lakhs demand draft duly paying the actual fee of 2.00 Lakhs
What is the motivation to join as an auditor @ Ernst and Young ?
Expand---------BRPT
During the year a firm has received TDS of Rs.30 lakhs and out of this an amount of Rs.9 lakhs was adjusted against the taxes. However, in the balance sheet under the head assets,the firm shown Rs.30 lakhs towards TDS. Is it correct. In my openion, in the balance sheet, the assessee has to show only Rs.21 lakhs as asset in the balance sheet, after reducing the tax adjustemnt of Rs.9 lakhs. Pl. Clarify.
is replacement of DVD writer come under fixed assets. I think that it cannot increase earning capacity or it cannot any separate identity.please clarify me
Why do you choose Ernst and Young ?
purchase price of property purchased within last 3 years is to be relied upon not and not on revalued amount for the purpose of loan against properties.
Audit 
