CA Foundation doubt
WHY CLOSING STOCK IS SHOWN IN CREDIT SIDE OF TRADING ACCOUNT?
Asked by OP23 Jun 2024559 views
7 answers
Chirag · 23 Jun 2024
Because it is a asset for firm
OP · 23 Jun 2024
yes
Ayaan · 23 Jun 2024
To give effect to how much stock is used during the year for the sales.
OP · 23 Jun 2024
actually you are right ,but we show it in the trading ac credit for finding out cost of gooods sold
Lakshmi · 23 Jun 2024
Because it is a matching concept and it is not a ledger balance and which the revenue is generated it should be matched...
Sonu · 23 Jun 2024
If we forgot to adjust it from purchases at the time of preparing trail balance then we have to adjust it in trading account by showing it on credit side of the account
Satyam · 23 Jun 2024
Because of matching principle
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