23 March 2013
my question is that when every item in P&L a/c is transferd from ledger but when we show closing stock inside the trail balnce than what is the logic behind this as closing stock doesn't have any ledger balnce ?
23 March 2013
Your value of closing stock already included in the Opening stock & Purchases, both are in trial balance debit side, closing stock is the balance of your Opening stock & purchases, hence it is out of trial balance as adjustment items