[Example] Opening Stock And Closing Stock In Trial Balance

 Welcome back to our blog today we are going to solve an example of opening stock and closing stock in trial balance so if you are an accounting student then you should read this post till the end.

Before I show the opening stock and closing stock in the trial balance let me tell you about opening and closing stock.

What is Opening Stock And Closing Stock In Trial Balance

Opening Stock: 

 

• It represents the value (or the amount in the trial balance sheet) of inventory at the beginning of the accounting period.

• remember Opening Stock is carried forward from the previous period's closing stock.

• Opening Stock = (Previous Period's Closing Stock) + (Purchases) - (Cost of Goods Sold)

Closing Stock: 

•  Closing stock represents the value of unsold inventory at the end of the accounting period.

• closing stock formula:- Opening Stock + Purchases – Cost of Goods Sold.

opening stock and closing stock example in the trial balance

Let's check the Trial Balance :

Accounts	Debit (DR)	Credit (CR)
...Other Accounts...	...	...
Opening Stock	10,000	-
Purchases	50,000	-
Direct Expenses	5,000	-
Sales	-	80,000
Closing Stock	-	15,000
Total	65,000	95,000

• as you see 10,000 rupees is opening stock in the trial balance and 15,000 is closing stock in the trial balance.

• Purchases and Direct Expenses both terms represent the costs incurred during the period to acquire inventory.

• Sales show the amount generated from selling goods during the accounting period.

Conclusion

Here in this post, we add an example of closing stock and opening stock in a trial balance so if you are an accounting student then you should read this article till the end.