@maaccountinghub

Why is closing stock not shown in the trial balance?

Generally closing stock does not appear in the trial balance, because a separate account for this is not opened in the general ledger.
closing stock represents the balance of goods unsold, out of opening stock and purchases. when goods are purchased, the double entry is completed with a purchases account and cash or creditor account.
the closing stock appears in the trial balance only when it is adjusted against purchases by the entry.
closing stock debit.
purchases account credit.



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