J.Gupta & Co Interview Questions and Answers

The journal entry for closing stock is used to record the value of unsold goods at the end of an accounting period.

• Closing stock is an asset and is recorded on the debit side of the trading account.

• The corresponding credit entry is made to the closing stock account on the balance sheet.

• The value of closing stock is determined by either the cost price or the net realizable value, whichever is lower.

• If the closing stock ...read more

Schedule III format refers to the format prescribed for financial statements under the Companies Act, 2013.

• Schedule III format is applicable for the preparation of financial statements of companies in India.

• It provides a standardized structure and presentation for financial information.

• The format includes various sections such as balance sheet, profit and loss account, cash flow statement, and notes to accounts.

• It spec...read more

Closing stock is recorded as an asset in the balance sheet through a journal entry.

• Closing stock account is debited

• Trading account is credited

• The value of closing stock is determined by physical stocktaking

• Closing stock is valued at cost or net realizable value, whichever is lower