English

Closing Stock is an adjustment posted on the credit side of trading account and it appears as an asset in the Balance Sheet.

Advertisements
Advertisements

Question

Closing Stock is an adjustment posted on the credit side of trading account and it appears as an asset in the Balance Sheet.

Options

  • True

  • False

MCQ
Advertisements

Solution

True

Explanation:

Closing stock (unsold goods at year-end) is credited in the Trading Account to compute gross profit and is shown as a current asset on the Balance Sheet, valued at cost or net realisable value.

shaalaa.com
  Is there an error in this question or solution?
Chapter 7: Final Accounts of Sole Proprietorship - EXERCISES [Page 118]

APPEARS IN

Goyal Brothers Prakashan Commercial Studies [English] Class 10 ICSE
Chapter 7 Final Accounts of Sole Proprietorship
EXERCISES | Q 37. | Page 118
Share
Notifications

Englishहिंदीमराठी


      Forgot password?
Use app×