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GCE Financial Accounting 1989 Question 14

Question 14

Final Accounts of a Sole Trader

Which of the following shows the stock at the start of an accounting period?

  1. A.Appropriation account
  2. B.Current assets in the Balance Sheet
  3. C.Current liabilities in the Balance Sheet
  4. D.Trading account
  5. E.Profit and Loss account
Show the answer and explanation

Answer: D (Trading account)

Explanation

Opening stock is added to purchases on the debit side of the trading account; the balance sheet shows the closing stock.