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Closing stock is the leftover balance out of goods which were purchased during an accounting period. Total purchases are already included in the trial balance, Hence closing stock should not be included in the trial balance again.
Because total purchases are already included in the trial balance
Has been adjusted in purchases
Please get the basics straight make the T-Accounts / transfer the closing balance to TB and prepare income statement (or SOCI) and Balance Sheet (SOFP). COGS is (Op Stock + Purchases - Closing Stock) while Closing Stock or Inventory (evaluated at lifo etc) goes to SOFP (current assets) i am just wondering how can the TB be balanced without the Stock.
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