alleryClosing stock is shown on:
ADebit of Trading Account
BCredit of Trading Account
CDebit of Profit & Loss A/c
DLiabilities of Balance Sheet
Answer & Solution
Correct answer: B. Credit of Trading Account
1. Closing stock is credited to Trading Account at year end.
2. It is also shown as a current asset on the Balance Sheet.
3. Opening stock, by contrast, is debited to Trading Account.
_Source: ICAI BoS Foundation Paper 1, Ch 7 U1 "Final Accounts", §1.3 closing stock_
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