why closing balance do not come in trial balance?if it is
in which case it comes?
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Answer Posted / kuntal ghosh
Closing Stock does not appear in a Trial Balance simply
because it is already included either in the figure of
"Opening Stock" or in "Purchase"(depending upon stock
clearance method like FIFO,LIFO used)or in both.As both of
these items appear in Trial Balance as Dr. items,therefore
Closing Stock can not be shown again as a Dr. balance in
Trial Balance because then it will be double
counting.However,in case of Trading Account it can be shown
as it appears as Cr. item.Cost of goods sold can be derived
from these three figures with the following method:
Cost of Goods Sold = Opening Stock + Purchase - Closing Stock
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