Do you know why Closing Stock is not appeared in Trial Balance?

what are you guys are saying , how IS can prepare without closing stock and who said that closing stock is not record in TB, see again your TB you will found closing stock entry there.
Opening + Purchase - Closing = Cost ( FIFO, LIFO and average method is another thing, If the stock value is change or stock report as not with inventory or access/ shortage, than you pass a adjustment entry.

Closing Stock Not Shown in Trial Balance

Let us read to understand the reason why closing stock is not shown in trial balance. The relation between closing stock and the trial balance is important to understand and endure, so that a correct trial balance is prepared and the ledger balances are accurately checked.

It is usually shown as an additional information or an adjustment outside the trial balance.

 

Reason

Closing stock is the leftover balance out of goods which were purchased during an accounting period but are unsold till now. Total purchases are already included in the trial balance, Hence closing stock should not be included in the trial balance again. If it is included, the effect will be doubled.

 

Suppose total purchases during an accounting period inside a Trial Balance are – 10,000 

Closing Stock – 2,000 (This is included in purchases already)

 

If both of these figures are shown in trial balance then there will be a mismatch of 2,000 because the effect has now been doubled in the trial balance. Also, No separate account is opened for closing stock inside the general ledger. Hence, closing stock is not to be shown in the trial balance.

 

Exception

The only instance when closing stock will appear in trial balance is when closing stock is adjusted against purchases with the below mentioned journal entry. This nullifies the double effect as closing stock & purchases are now adjusted and are treated separately.

 

 

Closing Stocks are market value, the trial balance is recorded by historical cost, is recorded when the shares are issued.

I totally agree with Mr.
Tahir Mahmood.
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.

closing stock is not a transaction,It is only an indication of the goods lying in the factory at the end of the year.

The reason why closing stock is not taken into account in a trial balance is because a trial balance is a balance of all ledger account a given point in time. It records only transactions which have a two way effect for example Purchases where goods are bought against cash or credit and sales where goods are sold against cash or credit..But closing stock is not a transaction having a two way effect any given point in time. It is only an indication of the goods lying in the factory at the end of the year. It is therefore showed below the trial balance and not in the trial balance. However in order to derive at the exact gross profit the closing stock is taken into consideration in the trading account and also appears as an asset in the balance sheet. In some case the closing stock appears as an adjusted purchase account in the trial balance and in this case it does not appear in the trading account but appears only in the balance sheet. The main reason is that we do not pass any entry for consumption. Hence we don’t prepare any ledger account for it.

Closing Stock don't including in TB BCZ  its already laying in TB that is  Opening Stock +Purchase - Sales is closing stock 

The another  thing is Current year "Profit or Loss"  don't  mention in the TB . it already laying TB 

trial balance is a balance of all ledger account at a given point of time,it include all transactions related to bussiness but closing stock is only a indication of good lying in the factory at the end of the year,but closing stock is taken to trading & profit and loss account for calculaing exact gross profit and also appears as an asset side of balance sheet

closing stock can be shown in trial if we pass a journal entry. i.e. Closing Stock Dr. To purchases.   its mostly given out of trial because it is deteremined at the time of finalisation of accounts and its directly entered in p/l account.   but if it is given in trial balance, then it will not be entered in p/l account. It will be shown only in the balance sheet.  

can anybody answer me where does consumption value goes in trial balance?

 

Total purchases are included in the trial balance. if entered again it will be double effecr. we should not .