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

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Question ajoutée par Muhammad Tayyeb , IREG Support Engineer , Saudi Telecom Company
Date de publication: 2014/12/05
Shabeer J Hussain
par 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
par 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

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