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fbaaberey
Nov 21, 2012, 12:37 PM
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
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