Question discussion

In the final accounts of a trading concern, the closing stock appears

Aon the credit side of the Trading Account and as a current asset in the Balance Sheet
Bon the debit side of the Trading Account only
Con the debit side of the Profit and Loss Account
Das a liability in the Balance Sheet

Correct answer: A

Explanation

Closing stock is deducted from the cost of goods sold by crediting it in the Trading Account and is carried forward as a current asset.

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