Multiple choice

Closing stock shown in the trial balance will be carried to

  1. trading account

  2. balance sheet only

  3. trading account and balance sheet

  4. profit and loss account only

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

When closing stock appears inside the trial balance, it indicates that it has already been adjusted against purchases. Therefore, it is only shown as an asset in the Balance Sheet and does not appear in the Trading Account.