中四會計關於trading+P+L

If you look at the trading account, the cost of goods sold = opening stock + purchases - closing stock.
(a) When the opening balances bought down from last year, there is a debit balance in stock account - the opening stock e.g. say $100
(b) And, the purchases made during the year say, $500.
(c) When the books is closed and a physical count of the closing stock is done, the purchase amount is then reduced by the amount of the closing stock e.g. say $120.
When you close the books for this year, you have to transfer all these amounts to trading account
(a) Dr. Trading Cr. Stock $100 - Opening Stock
(b) Dr. Trading Cr. Purchases $500
(c) Dr. Stock Cr. Trading $120 - Closing Stock
the cost of goods sold is then be $(100 + 500 - 120) = $480

In the tading and profit and loss account:
Cost of Goods Sold=
opening inventoy + purchases - returns outwards + carriage inwards - closing inventory