0
How will you find closing stock in trading and profit and loss account?
Wiki User
∙ 15y ago
GROSS PROFIT = SALES - [OPENING STOCK + PURCHASES + DIRECT EXPENSES - CLOSING STOCK]... substitute if u have all the other values
Wiki User
∙ 15y ago
Add your answer:
Earn +20 pts
How do you do bar trading accounts?
a bar trading account is just like a profit an lose trading account use have sales then you minus less cost of goods sold then you have your opening stock at the starting of the year an then you add purchases an then you minus less closing stock at the end of the year an the balance that you get is called the gross profit.
How do you enter closing stock in tally?
Closing Stock:-Last years Gross profit*Present year sales account+direct and indirect account+purchase account+opening stock-sales account
What is journal entry of closing stock?
it s transfer to profit and loss account.
Which item appears in both the balance sheet and the profit and loss account?
Closing Stock
What is the Journal entry for closing stock?
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. ============================== Stock only needs to be one account (not both Opening and Closing accounts). Post it's balance to P&L (Cost Of Sales) as "Opening Stock". Journalise the new Stock figure as a credit "Closing Stock" to P&L (Cost Of Sales) and debit the Stock account. Calculate Cost Of Sales as above.
How do you get the closing stock in trading profit and loss when not given?
How do I find the opening stock when given the closing stock
How do you do bar trading accounts?
a bar trading account is just like a profit an lose trading account use have sales then you minus less cost of goods sold then you have your opening stock at the starting of the year an then you add purchases an then you minus less closing stock at the end of the year an the balance that you get is called the gross profit.
How do you enter closing stock in tally?
Closing Stock:-Last years Gross profit*Present year sales account+direct and indirect account+purchase account+opening stock-sales account
What is journal entry of closing stock?
it s transfer to profit and loss account.
Which item appears in both the balance sheet and the profit and loss account?
Closing Stock
What is the effect of closing stock on net profit?
A business remaining stock at the end of an accounting period is known as closing stock. It may include the finished goods, raw material and work in process and it is also deducted from the periods costs in the balance sheet. however sales in the trading a/c do have an effect on the gross profit and hence in the profit and loss a/c for the net profit. An increase or decrease in closing stock will have an effect on the net profit..if closing stock increase the gross profit will increse and vice versa. As the gross profit will increase the firm will able to deduct more expenses from it and hence the remaining will be the net profit.( increase)
What is the Journal entry for closing stock?
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. ============================== Stock only needs to be one account (not both Opening and Closing accounts). Post it's balance to P&L (Cost Of Sales) as "Opening Stock". Journalise the new Stock figure as a credit "Closing Stock" to P&L (Cost Of Sales) and debit the Stock account. Calculate Cost Of Sales as above.
What is the accouting effect of closing stock is 5000 kilograms as per books of account but as per physical value it is 4500 kilograms?
this is overvaluing of closing stock --> gross profit overstate --> net profit overstated. current assets overstated.
Why is closing stock written at credit side in trading account?
Closing stock or as it is also named as closing inventory is definitely an asset. But trading account is not the same as Inventory account. Inventory, being an asset, should have a debit balance in Inventory account. Trading account is a distinct account and both must not be mixed up together.The answer to the question "why closing stock is written on the credit side of the trading account" lies in understanding two points:First, Cost of sales must be matched up with current year's revenue and as the inventory at the end of the period has not been sold and thus should not be accounted against sales revenue, therefore it must be deducted from cost of sales. That is the conceptual reason why we deduct closing stock from the total of opening inventory and purchases.Second, in order to account for the inventory at the year end in the trading account, closing entry is passed and due to this closing entry closing stock appears at the credit side of trading account. This is the accounting reasonfor having it on the credit side. The closing entry is as follows:Debit: Inventory accountCredit: Trading accountInventory account is debited as inventory is still with the entity at the end of the period and is an asset so asset will be raised by debiting the inventory account.Students must understand that at the end of the period this asset is raised because usually it is not known how much stock is still with the entity until stock count and it was all treated as part of cost of sales i.e. trading expense against this period sales.But as it has not been traded that's why trading accounting in which cost of sales has been recorded it will be credited to give the correct information of the total inventory consumed in making current period's sales which is Opening Inventory + Purchases - Closing Inventory.
What is the closing price of a stock?
The closing price of a stock is how much a stock is worth after a specific day of trading.
Opening stock minus closing stock?
profit or loss
If closing stock increases how will it effect net profit?
net profit will increase
