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debit or credit balances

  • 3 posts
  • # 103485

Can somebody tell me whether opening stock and closing stock is a debit or credit balance please? Im confused!!Undecided
Thank you! 
  • Student
  • 59 posts
  • # 103486

Opening Inventory is debit on the Income and Expenditure account (Profit & Loss).

Closing Inventory is a credit on the Income and Expenditure account (Profit & Loss).

Closing Inventory is a debit on the Balance Sheet which is offset by a liability or capital item such as a loan, creditor or increase in owners capital.

Eb 



Edited at 03 Jan 2015 03:36 PM GMT
  • 3 posts
  • # 103489

Ebeneezer said:

“

Opening Inventory is debit on the Income and Expenditure account (Profit & Loss).

Closing Inventory is a credit on the Income and Expenditure account (Profit & Loss).

Closing Inventory is a debit on the Balance Sheet which is offset by a capital item such as a loan, creditor or increase in owners capital.

Eb 

”

 how about in the trial balance? Is the closing inventory included in the trial balance?
  • Student
  • 59 posts
  • # 103490

Yep.

Opening Inventory is normally included in the Trial Balance and Closing Inventory as one of the adjustments to the TB as it has to be calculated after period end.
  • 3 posts
  • # 103493

Ebeneezer said:

“

Yep.

Opening Inventory is normally included in the Trial Balance and Closing Inventory as one of the adjustments to the TB as it has to be calculated after period end.

”

 Thank you so much! :) 
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