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    fbaaberey's Avatar
    fbaaberey Posts: 2, Reputation: 1
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    #1

    Nov 21, 2012, 12:37 PM
    Closing stock
    I know that in a trial balance closing stock is not shown there but shown under the trial in the additional notes. Can there be a very sophisticated situation when it could be shown in trial balance? If yes will it be at the debit side or credit side?
    paraclete's Avatar
    paraclete Posts: 2,706, Reputation: 173
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    #2

    Nov 21, 2012, 06:44 PM
    Obviously in a perpetual inventory system, the balance of inventory is the closing stock, but under such a system the cost of sales has already been determined. Inventory is an asset it is always a debit
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