Trial questn
UMANG SHAHI (student) (98 Points)
19 December 2013
what are thw conditions in which closing stock does not come in trial balance...plz help friends..
6 Replies
Harendra Kumar
(Tax Advisor )
(1326 Points)
Replied 19 December 2013
In my view you are talking about Tally in this regard you should mention closing balance in Opening Balance every month then you show the closing balance.
UMANG SHAHI
(student)
(98 Points)
Replied 19 December 2013
Thanx alot harendra for helping..but I was asking about the conditions in which the closing not come in trial balance in accounts question
Stranger
(.)
(5531 Points)
Replied 20 December 2013
closing stock does not appears in Trial Balance when the stock valuation is done after preparing the final trial balance and thus it will be shown on credit side of Trading A/c & Balance Sheet's Asset Side. Generally closing stock is valued after end of F.Y. & also it is preferred to show it on trading A/c separately without adjusting it in the Purchases A/c.
If the valuation is done before preparing trial balance, then the following entry is passed and accordingly the adjusted account's balance shown in Trial Balance :
Stock-in trade A/c Dr.
To Purchases
Harendra Kumar
(Tax Advisor )
(1326 Points)
Replied 20 December 2013
I agree with Mr. Stranger, he explains to you in deeply and follow to him.
Hojefa
(Ca final)
(178 Points)
Replied 20 December 2013
Dear,
In simple, if any entry has not been passed related to closing stck till preparence of trial balance
then no clsk stk (dr bal) would be stood in trial baln. but after its valuation at last following
adjustment to be follow i.e clos stk a/c dr To Trading A/c & closing stk shown in b/s (asset side).
by passing 1st entry closing stks ledger shows dr balnce hence it will be stud in b/s.
(Guest)
Closing stock is not shown in trial balance. As all transactions related to stock i.e. purchases or sales are affected through purchase or sales account. So at the end of period. Closing stock is taken in books with this entry (in tally, it happens automatically. You need not to do it)
Closing stock Dr.
To Trading A/c
Recent Topics
- Financing for Properties and Businesses
- TAX DEMAND STILL SHOWING ON INCOME TAX PORTAL, EVE
- FORM 10 IEA IN Revised return
- ITC Eligibility on GTA
- Top Highest Tax-Paying Celebrities: FY 2023-24
- Misplace society Bye law
- Submit ommited invoice of previous year
- Need your valueble insight
- GSTR-9 Invoices
- Agricultural Business Loss
Related Threads
CAclubindia
