Answer Posted / bharat bhushan sachdeva

Closing stock can come either in the trial balance or
outside the trail balance it depends upon the calculation of
purchase or cost of goods sold.

In first case when closing stock is the part of trial
balance then it will not be a part of trading account then
it will shown on the asset side of balance sheet

In second case when closing stock is not a part of trial
balance means it comes as adjustment with trial balance then
it comes on the credit side of trial balance and it is also
shown on the asset side of balance sheet

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