Question

Opening stock is the first item on the ______ side of ______.

Options

• Debit, trading account

• Credit, trading account

• Debit, profit and loss account

• Credit, profit and loss account

Answer 1

Opening stock is the first item on the Debit side of trading account. 

Explanation:

The unsold stock remaining from the previous accounting period is the opening stock of the current accounting period. It is typically listed on a company’s trial balance and appears on the debit side of a trading account.