Advance book keeping

Durga_Dhakal

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

Dd

CeeJaySix

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.