Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

Why is closing stock reported as additional information rather than appearing in trial balance?

user-image
Question added by Muhammad Tayyeb , IREG Support Engineer , Saudi Telecom Company
Date Posted: 2014/12/05
Shabeer J Hussain
by Shabeer J Hussain , Senior Accountant , Zifty Trading & Contracting WLL

Most of the stock items are resale in nature and such items are valued by the business at the end of each financial year, and the valuation is subsequently entered in the books, for the purposes of financial reporting.Thats why closing stock items are not reflected in Trial Balance.

     

VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

Trial balance is the summary of balance of accounts but closing stock is not any relation with any accounts

More Questions Like This

Do you need help in adding the right keywords to your CV? Let our CV writing experts help you.