Closing stock in the Trial Balance implies that______________?
AIt is adjusted in the Profit &Loss A/c
BIt is already adjusted in the opening stock
CIt is adjusted in the Purchase A/c
DIt is adjusted in the Cost of Sale A/c
Correct answer
C. It is adjusted in the Purchase A/c
Explanation
Closing Stock appearing in the Trial Balance implies that it has already been adjusted in the Purchases Account and hence appears as an asset in the Balance Sheet.