Question

Why is closing stock shown on the credit side of the Trading Account?

विकल्प

• It is an expense

• It increases gross profit

• It is unsold goods representing value brought forward

• It reduces purchases

Answer 1

It is unsold goods representing value brought forward

Explanation:

Closing stock is goods left unsold at the end of the period; it is shown on the credit side because its value is added in calculating gross profit.