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Advance book keeping

Can I have any one support to explain about closing stock? I am preparing extended trail balance and confused about closing stock, I know that closing stock is assets and it go to balance sheet but why so we post it to P/L account? AND also where do we post carriage inward and discount received in extended trial balance.

Thanks for you help in advance



  • CeeJaySixCeeJaySix Well-Known Registered Posts: 645
    Because the movement in stock between one period and the next forms part of your cost of sales.

    CoS = opening stock + purchases - closing stock.

    Carriage in and discounts received would also usually go into CoS.
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