Why Closing Stock Not shown in Trial Balance?

Answer Posted / carltawia

This is because it is a post trial balance adjustment
effected after the trial balance has been adjusted. the
adjustment entry is as follows

DR Stock
CR Income Statement

The debit balance for stock is what appears in the balance
sheet.
The credit balance to the income statement is effectively a
deduction from cost of sales, since unsold stock is not part
of cost of sales for the period

Is This Answer Correct ?    77 Yes 26 No



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