closing stock
meibaker
Registered Posts: 481 Dedicated contributor 🦉
in trial balance, why you should enter closing stock on both debit and credit side, do i need to think as close stock (p&l) and close stock (b&s), am i right?
many thanks
many thanks
0
Comments
-
Yes.
Inventory figure on the balance sheet reflects the closing stock as at last day of the year.
It is included in cost of sales on the P&L
Extracted as;
Cost of Sales
Opening Stock
Add Purchases
Less Closing Stock
It is reducing the cost so is therefore a credit in P&L. It is an asset, so is therefore a debit in the BS.
Paul0 -
thanks0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.5K For AAT students
- 322 NEW! Qualifications 2022
- 164 General Qualifications 2022 discussion
- 11 AAT Level 2 Certificate in Accounting
- 56 AAT Level 3 Diploma in Accounting
- 88 AAT Level 4 Diploma in Professional Accounting
- 8.8K For accounting professionals
- 23 coronavirus (Covid-19)
- 272 VAT
- 92 Software
- 273 Tax
- 135 Bookkeeping
- 7.2K General accounting discussion
- 200 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 345 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 582 Job postings
- 16 Who can benefit from AAT?
- 36 Where can AAT take me?
- 42 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 66 AAT membership