MP Board · Class 11 · Accountancy · Financial Statements - IWhere is closing stock shown if it is given inside the trial balance?
Step-by-Step Solution
If closing stock appears inside the trial balance, it means adjustment for opening stock and purchases has already been made; hence, it is shown only in the Balance Sheet as an asset.
Detailed Options Breakdown
Option : Trading Account only
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Financial Statements - I.
Option 1: Balance Sheet only (Correct Answer)
Correct choice. Refer to the step-by-step verified solution guidelines above for details.
Option 2: Trading Account and Balance Sheet both
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Financial Statements - I.
Option 3: Profit and Loss Account only
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Financial Statements - I.
💡 Study Guide: This question tests core syllabus concepts from Financial Statements - I. For formulas, key summaries, and mock exam reference guides, read the full Financial Statements - I Revision Notes.