What is meant by closing stock? Show its treatment in final accounts?

Explanation

Closing stock implies the worth of unsold merchandise at the tip of associate accounting amount. The valuation of closing stock is completed on the premise of its price worth or the realizable worth, whichever of the 2 is lesser. Treatment of closing stock:

If closing stock is given within the adjustment, then there'll be 2 postings. mercantilism Account aspect accounting system method of accounting} record assets side below current assets If closing sotck is given within the balance, then it must be shown solely within the assets aspect of the record.