girish (ca cpt) (25 Points)
18 May 2011hi,
plz answer my quaries regarding trial balance
(1)why we dont take general reserve etc in trial balance?
(2) why only opening stock is taken in trial balance and not closing stock?
(3)if bonus shares are issued by the company then what is the ststus of it in trial balance.
Suresh Prasad
(www.aubsp.com)
(15630 Points)
Replied 18 May 2011
| Originally posted by : girish | ||
 |
hi, plz answer my quaries regarding trial balance (1)why we dont take general reserve etc in trial balance? (2) why only opening stock is taken in trial balance and not closing stock? (3)if bonus shares are issued by the company then what is the ststus of it in trial balance. |
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G/R always comes.!!!!!!!!
Closing entry is given for stock value at the end of the year..........!!!!!!!!
Bonus issue: depends on your entry for the bonus issue..!!!!!!!!!
Please Read carefully the Basic Principles of Accounting jee...!!!!!!!!!!!
However if any prob. then please post your quiry on CCI ....we are always ready to help you.....!!!!
Suresh Prasad
(www.aubsp.com)
(15630 Points)
Replied 18 May 2011
If you completed the valuation of closing stock before preparing the trial balance , then you can include that in trial balance also. Then treatment will be changed if not given like a adjustment. Only include in balance sheet but not in trial balance if included in trial balance.
Please correct me friends if am wrong. Thank you.
Hardik Dave
(IPCC and CS Professional(FINAL) Student)
(15533 Points)
Replied 18 May 2011
Thanku for sharing.smile.
NANDHINI
(IPCC)
(157 Points)
Replied 18 May 2011
| Originally posted by : A.Jayasri | ||
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IF THIS IS SO,
THEN IT MAY INCREASE COST OF GOODS SOLD.........
AND DECREASES GP KNOW?!!!
IF NOT PLEASE CLARIFY ME!!!..............
IAM SO CONFUSED..........
Admire to CA
(student)
(60 Points)
Replied 19 May 2011
"hi,
plz answer my quaries regarding trial balance
(1)why we dont take general reserve etc in trial balance?
(2) why only opening stock is taken in trial balance and not closing stock?
(3)if bonus shares are issued by the company then what is the ststus of it in trial balance."
Trail Balance is always based upon the closing balances on the date .let it be 31/03/2011 then we take all balances existing on dat date.whether its General reserve or any other reserve .
2)If we have closing stock on the records we can include it in the trail balance but be assure dat when we have opening stock,purchases,closing stock ;it means we had eanred sumthing i.e is differnce of cl.stock +sales -Opening Stock-purchase=profit..so when we take closing balnce we have be assure 2 take Profit or loss to tally the trail
3)Bonus issue doesnt effect trail sumtimes.if bonus shares are issued from security premium account .balance of security premium account reduced and capital increases.generally it doesnt flow of any cash..
Plz rectify me if any1 found any mistake in my statement
thanks
Amit Surana
(Student CA/CS-Professional)
(268 Points)
Replied 19 May 2011
THEN IT MAY INCREASE COST OF GOODS SOLD........
it wont increases your COGS, C/S adjustment will decrease COGS.
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