Closing Stock At End of the Year

This query is : Resolved

Jigar (Querist)
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27 January 2024 Closing stock a/c...debited
To purchase account
or
Closing stock a/c...debited To trading account

1. WHICH ENTRIES IS CORRECT
2. DIFFERENT BETWEEN BOTH ENTRIES

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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28 January 2024 Closing Stock is debited as there is an increase in the asset. Purchase A/c is credited because of the Matching concept. After recording the adjustment entry, the closing stock is shown on the debit column of the Trial Balance. It is not shown in the Trading A/c as it is already adjusted against purchases

Jigar

Jigar (Querist)
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28 January 2024 Thank you
CA R SEETHARAMAN
But what if wo go for second entries .

.

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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29 January 2024 No problem second option can also be chosen.

Jigar

Jigar (Querist)
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29 January 2024 Thank you once again but in this case will the closing stock can be shown on the debit column of the Trial Balance???

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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