Closing stock implies the value of unsold goods at the end of an accounting period. The valuation of closing stock is done on the basis of its cost price or the realizable value, whichever of the two is lesser. Treatment of closing stock:
If closing stock is given in the adjustment, then there will be two postings. Trading Account credit side Balance Sheet assets side under current assets If closing sotck is given in the trial balance, then it needs to be shown only in the assets side of the balance sheet.
