Journal Entry for Closing Stock

Journal entry for closing stock is made at the end of financial year when the company or firm is closing its books of accounts unlike other journal entries which are passed monthly or daily and hence in simple words journal entry for closing stock will be passed only once in a year. Given below is the journal entry for closing stock –

Closing Stock Account Dr

   To Trading or Purchase Account

After passing the above entry closing stock will be shown on Asset side of the balance sheet while preparing the balance sheet at the end of the year by the company.

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