If closing stock appears in the trial balance then it appears in _______.Trading accountProfit and Loss accountBalance sheetProfit and loss appropriation (2024)

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Question

A

Trading account

B

Profit and Loss account

D

Profit and loss appropriation

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Solution

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If closing stockappeared in Trial balance it means the purchases has been reduced to the extentof stock amount at the end of the period. The accounting treatment will beclosing stock to be shown in Balance sheet under current assets and it shouldnot be credited to Trading a/c.

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If closing stock appears in the trial balance then it appears in _______.Trading accountProfit and Loss accountBalance sheetProfit and loss appropriation (2024)
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