When does closing stock appear inside the Trial Balance? - Vidyadip

Question

When does closing stock appear inside the Trial Balance?

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Answer

Closing stock is given inside the Trial Balance when the entry to incorporate the closing stock in the books has already been passed. It would imply that the Closing Stock must have been deducted out of Purchases Account. Hence, in such a case, Closing Stock will not be shown in the Trading Account but will appear on the Assets side of the Balance Sheet only.

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