Closing Stock

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ARCHANA

ARCHANA (Querist)
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21 September 2009 Can anyone please explain, why the closing stock appears outside the trial balance????

CA Satheesh

CA Satheesh (Expert)
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21 September 2009 ther is no need to have it outside. by follwing entry it may inside TB

Stock account Dr
Purchase account Cr

Or
all your purchse of material will be first debited to Stock account & cr to vendor account
consumption of material will be booked to stock account
RM consumption account Dr
Stock account Cr

So balance in stock account is Closing stock.