Account: closing stock

opening stock
+ Purchase
- cost of goods sold
= closing stock

from above, you can find closing stock is a balancing figure but not an account balance. When preparing T/B, opening stock, purchase and cost of goods sold are included in T/B, that's why closing stock is not in T/B.

At year end closing, opening stock, purchase and COGS will be transfer to P/L, then the balance of stock account carry forward becomes closing stock of this year / opening stock of next year.

咁祇不過係習非成是。正確做法係每月Dr. Purchases Cr. Opening Stock ，然後再Dr. Closing Stock Cr. Purchases。第一條係將上個月賣剩嘅貨帶落今個月繼續賣，而第二條就將月尾仲未賣得出嘅貨由成本中剔除帶落下個月。
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