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Q.

What is the journal entry of closing stock?

Tags: education, closing stock, journal entry
Asked by ISHAN SHARMA, 09 Feb '13 06:16 pm
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Answers (3)

1.

1. Closing Stock A/c ...Dr.
To Trading A/c
OR
2. Stock (Closing) A/c .... Dr.
To Purchases A/c

The 2nd option is applied when Purchases are sought to be adjusted. The adjusted Purchases = Opening Stock + Net Purchases - Closing Sotck.
Answered by Anil K Chugh, 09 Feb '13 06:43 pm

 
  
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2.

Closing Stock (Assets, Balance Sheet) A/C Dr. -----
Trading or P/L A/C Cr. (Expenses, Trading or P/L) A/C -----

The Dr. entry of the closing stock will remain as assets in
inventory and will be carried forward to next year where as
Cr. entry will be deducted [opening stock+purchase-closing
stock (trading)] as like expenses in Trading or P/L A/c and
not will be carried forward to the next year.
Answered by LIPSIKA, 09 Feb '13 06:18 pm

 
  
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3.

Anil K Chugh has given d right answer
Answered by vedprakash sharma, 09 Feb '13 11:34 pm

 
  
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