Dear Sir, While finalizing the annual accounts we show the closing stock in our trading account while inventory is the part of current assets so we are also showing the inventory in our balance sheet. But question is that inventory should come only in balance sheet not in trading account...

Why Should Closing stock appear in trading account and balance sheet ? Is this the only double entry?

We treat closing stock as an asset, and recognise it in the balance sheet and show it in the credit side of Trading account as goods unsold at the end of the year. But as we know last year's closing stock is the opening stock for the current year, Then why we treat opening stock as an expense...